Gold Futures have finally found good support at the level of $1388; and look ready for a technical bounce from the current levels to return back in the uptrend territory shortly. No doubt that the U.S. employment report for June gave a mostly positive reading, reducing market conviction that the Federal Reserve will need to cut interest rates by a full half-point when it meets at the end of the month; but I find that the current downward move looks only the result of profit booking, after a week-long upward journey; which has pushed the Gold futures on up to the immediate support at the level of $1389.
No doubt that the Gold prices were bolstered this week by U.S. President Donald Trump’s nomination of two dovish candidates for the Federal Reserve. Secondly, the unexpected announcement that IMF chair Christine Lagarde is nominated as the head of the European Central Bank also sent the yellow metal higher, which has boosted the feeling that the way is cleared for both the Fed and the ECB to comply with expectations that the central banks will move forward with policy easing.
But, if we have a look at the prevailing bearishness in global equity markets, I find this downward move of Gold futures have provided one more good opportunity to Gold bulls to go long from the current levels for an immediate target at $1414; where a sustainable move will push the gold futures once again above the level of $1429 during the upcoming week. For watching my upcoming video on analysis of the movements of Gold futures, subscribe my YouTube channel ‘SS Analysis’.
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