Instrument: GOLD
Bullish Preference:
A buy position is envisaged if the price trades above 1926.58 with take profit at 1930.16.
Bearish Preference:
A sell position is envisaged if the price trades below 1915.66 with take profit at 1912.35.
Fundamentals:
No high impact fundamental affecting the instrument
Comment:
The gold price has started the week holding onto the gains seen on Friday when the US Dollar slid lower across the board. The Dollar weakened despite Treasury yields continuing their march higher with the benchmark 10-year bond trading near 4.10%, a long way from the low of 3.25% seen in April. The policy-sensitive 2-year note yielded over 5.10% last Thursday for the first in 16 years before dipping to 4.75% on Friday. It is now back above 4.90%. The bumpy ride was indicative of the data points along the way as well as the Federal Open Market Committee (FOMC) meeting minutes revealing a more hawkish board than the market had previously perceived to be the case. The interest rate market now weighs a 25 basis point hike by the Fed on the 26th of July at over 80% probability.
Analysis: SCRUM Team