Instrument: GOLD
Bullish Preference:
A Buy position is envisaged if the price trades above 2027.96 with Take Profit at 2034.87
Bearish Preference:
A Sell position is envisaged if the price trades below 2016.55 with Take Profit at 2006.44
Fundamentals:
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Comment:
Gold prices have risen sharply in recent weeks and are likely to stay volatile as traders react to varying global economic signals, according to HSBC.
Gold futures are currently flat at $2,042.30 a troy ounce, having hit a record high on Friday at $2,089.70 an ounce. Still prices have been highly volatile, moving within a $150 range in the space of three weeks. “A volatile market is also an uncertain market,” James Steel, chief precious metal analyst at HSBC says in a note.
“The upwards momentum in gold has been blunted – but certainly not reversed – we anticipate a wide and volatile trading range.” Steel adds that gold could firm above $2,000 an ounce but physical buying is likely to be strained on the high prices.
Analysis: SCRUM Team