On the daily chart, MCX Gold prices have been trading within a rising wedge. Moreover, COMEX Gold prices have been in a higher top higher bottom formation. Furthermore, prices have been sustaining above its 25 SMA on the daily chart. In addition, no divergence is visible in the daily chart suggesting the continuation of the current trend for next few days. Therefore, we keep our bullish view on Gold with an expectation of 29800 levels.
Gold on MCX settled up 1.15% at 29503 as the dollar weakened and the euro powered ahead after the head of the European Central Bank refrained from talking down the single currency at a high-profile meeting of central bankers. At the meeting in Jackson Hole in the United States, the ECB’s Mario Draghi said the bank’s ultra-loose monetary policy was working and that the euro zone’s economic recovery has taken hold, refraining from commenting on the euro’s recent strength.
At Jackson Hole, U.S. Federal Reserve Chair Janet Yellen made no reference to U.S. monetary policy but instead focused on financial regulations, leading traders to expect interest rates to be raised more slowly. Further supporting gold was geopolitical uncertainty sparked by U.S. President Donald Trump’s renewed threat to scrap the North American Free Trade Agreement. Speculators raised their net long position in COMEX gold for the sixth straight week in the week to Aug. 22. Global financial markets will focus on this week’s U.S. employment report to gauge how it will impact the Federal Reserve’s view on monetary policy through the end of the year. In addition, market players will keep an eye out on a revised reading of second-quarter U.S. growth for further hints on the strength of the world’s largest economy.
This week’s calendar also features U.S. data on personal income and spending, which includes the personal consumption expenditures inflation data, the Fed’s preferred metric for inflation. Technically market is under short covering as market has witnessed drop in open interest by -2.4% to settled at 6918 while prices up 336 rupees, now Gold is getting support at 29278 and below same could see a test of 29053 level, And resistance is now likely to be seen at 29623, a move above could see prices testing 29743.
BUY GOLD OCT 2017 @ 29500 SL 29380 TGT 29640 – 29800
On the daily chart, MCX Silver price has been hovering within a rising wedge with no divergence. Moreover, on the daily chart, MCX Silver prices have sustained above the neckline of its inverse head and shoulder pattern. Furthermore, price has been trading above its 25 SMA on the daily chart. In addition, momentum indicator RSI is in positive crossover and rising on the daily chart. Therefore, we keep our bullish view on Silver with an initial target of 40700 levels.
Silver on MCX settled up 1.83% at 39727 rallied in the line of expectation as mounting geopolitical tensions over North Korea’s launch of a missile that flew over Japan stoked demand for safe-haven assets, while weighing heavily on the dollar and equities. Geopolitical tensions running high after North Korea fired three short-range missiles into the sea Saturday amid U.S.-South Korea military drills.
South Korea and Japan said the missile North Korea launched early on Tuesday landed in Pacific waters east of Hokkaido after flying over the northern Japanese island, in a sharp escalation of tensions on the Korean peninsula. Also support seen after President Donald Trump said on Monday he hoped a government shutdown would not be necessary over his demand that the U.S. Congress fund his proposed wall along the southern border with Mexico.
Last week, gold prices ended higher in a volatile session on Friday, reversing earlier losses as the U.S. dollar weakened after Federal Reserve Chair Janet Yellen’s speech at Jackson Hole didn’t specifically address monetary policy. Gold gained ground as the dollar fell after Yellen’s speech at the Jackson Hole economic symposium did not discuss the outlook for monetary policy, disappointing some investors who had hoped she would sound a hawkish tone. The dollar index has fallen around 10% so far this year amid ongoing uncertainty over the economic agenda of U.S.
President Donald Trump and doubts that the Fed will deliver a third rate hike this year. In the week ahead, investors will be focusing on Friday’s U.S. jobs report for August to gauge how it will impact on the path of Fed policy. Technically market is getting support at 39272 and below same could see a test of 38816 level, And resistance is now likely to be seen at 39972, a move above could see prices testing 40216.
BUY MCX SILVER SEP 2017 @ 39700 SL 39400 TGT 39950-40180.
MCX Copper prices have been advancing with a higher top higher bottom format on the 4 hourly time frame. In addition, prices trading above 21 EMA on the 4 hourly chart. The primary trend remains positive; however, a negative divergence on the 4 hourly chart suggests a sign of a tiring bulls. Momentum indicators RSI is in upside down mode in the 4 hourly chart. Based on the above reading we keep our view bullish with revised expectation of 437 levels in coming trading sessions.
MCX Crude Oil price have found resistance around the reflection point twice and currently falling. In addition, price slipped below its range-bound pattern on the daily chart. which adds to the bearishness. Moreover, NYMEX crude is struggling to sustain above $50 mark suggests a capping of upside around $50. Further more price slipped below 21 EMA on a 4 hourly chart. Therefore, we keep our view bearish on MCX Crude and expect a correction towards 2850 levels in the few trading session
Neal Bhai Report - Today Technical Analysis and Outlook Report from neal Bhai