Instrument: GOLD
Technical Analysis
Bullish Preference:
Buy position is envisaged if price trades above 1789.21 with take profit at 1790.78.
Bearish Preference:
Sell position is envisaged if price trades below 1784.77 with take profit at 1782.73.
Fundamentals:
USD 3:45 PM Chicago PMI
Comment: Gold extended a four-day losing streak during Monday’s APAC mid-day trading session. Prices have fallen 2.36% last week after Fed Chair Jerome Powell painted a hawkish-biased outlook for rate hikes, saying that he will not rule out the possibility of raising rates at every forthcoming policy meeting to rein in inflation. This is more than a market expectation of 3-4 rate hikes this year, resulting in sharp market reactions. The US Dollar index jumped while gold prices tumbled, as a rising interest rate is suppressing the non-yielding precious metal.
Analysis: SCRUM Team
