International Gold on Comex has settled 1087 down by 43 Dollar on weekly continuation chart.
The gold price is continuing its painful downward spiral after taking a turn for the worse last week.
Gold remained under pressure for 3rd consecutive week and settled with negative note. It is continuously closing below the 10 weeks SMA indicating lack of buying enthusiasm in this metal. Stochastic kissed overbought level and now stochastic lines overlapping each other is fresh hints for weakness in short term trend. Gold witnessed nice decline following signals from a bearish inside bar that formed last week on weekly continuation chart. This week immediate support will be around 1064 any failure of this level will bring more weakness and then attempts towards 1035$ canâ€™t be ruled out. Areas of 1064$ will remain key support on closing basis and any weekly close below this level will trigger more weakness in this counter. In the upper side resistance is now seen near 1105$ and 1130$ any sustained move above these levels will bring some more charm in this counter and then a rally towards 1164$ and more upside canâ€™t be ruled out.
Goldman Sachs wrote in a note to clients that it expects the normalisation of interest rates, which will hurt non-yielding assets to push gold down to $1,100, $1,050, and $1,000 an ounce over the coming three, six and 12 months, says CNBC.
Trading range for the week is expected among the key support at 1064$ and resistance at 1105$.
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