Gold and silver are firm before the FOMC. There is expectation that Federal Reserve will reiterate of easy monetary policy for a very long time. Federal Reserve and most central banks will tolerate higher inflation for the rest of the year and next year. This is one of the reason why gold and silver prices are rising.
I have been saying for quite a while that global economic growth in the third quarter is the key. June saw pent up demand due to earlier month closure. A sharp fall in July US consumer confidence could be just an indication of more bad US economic data releases over the coming few weeks. Gold and silver will rise unless US economy shows signs of sustained rebound.
Corrections has been short lived. Yesterday's sharp price reversal was an indication of the future trend in gold and silver.
COMEX GOLD DECEMBER 2020 - current price $1964.90
? Gold needs to trade over $1948.50-$1958.50 zone till Friday to rise to $2048.60 and $2095.90.
? Sell off will be there only if gold trades below $1946.40.
? I am against new buying unless gold trades over $2022 till end August.
MCX GOLD OCTOBER 2020 - Current price Rs.52748.00
Support: 52027-52370
Resistance: 52986-53668
View: (a) Gold can rise to 53668 as long as it trades over 52180. (b) Gold will crash only if it trades below 52180. (c) Small correction can be there if gold trade below 52370.
Trading Strategy: Trend is bullish. Technically over brought. I prefer to take a chance and sell gold between 53568-53568 with strict trailing stop loss over 53902 for 52027 and 51688 (till tomorrow)
(prices in Indian rupees above)
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NOTES TO THE ABOVE REPORT
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