Back
15 Apr 2015
Gold set to drop towards $1181.3-$1178.5 this week – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, explains that the likelihood of a US rate hike and IMF’s downward revision to US growth forecasts has kept Gold weak, and the precious metal might drop lower towards $1181.30-$1178.5 by this weekend.
Key Quotes
“One of the major stories so far this week is the weakness in Gold despite so much economic disappointment all across the globe, accompanied by Greece issue.”
“The drop in prices makes Gold an under performer among the group of traditional safe haven assets. The US 10-year Treasury yield has dropped from 1.95% to 1.87%, while the Japanese Yen too has gained from 120.82 per USD to 119.33 per USD.”
“Gold, which is highly sensitive to US rate hike prospects, could have stayed weak on increased prospects of rate hike after the IMF’s downward revision of the growth forecasts.”
“Given the metal has under-performed so far, any relief on Greece issue is likely to weigh over the metal heavily. Meanwhile, the strength in the USD would continue to weigh over prices.”
“The daily chart shows, the metal is trading in a downward channel after having breached the rising trend line on Monday.”
“So far the metal has been able to sustain above its 50-DMA, although immediate gains appear capped at 1195.8 (channel resistance), followed by resistance at 1205.1 (23.6% Fib retracement of 1142.6-1224.4). The metal is likely to witness selling pressure so long as it trades below USD 1205.1.”
“Meanwhile, immediate support is seen at 1183.5 (50% Fib retracement of 1142.6-1224.4) and 1181.3 (falling trend line support). The daily RSI has turned bearish after breaching the head and shoulder pattern.”
“The metal is more likely to extend the drop to USD 1181.3-1178.5 by the weekend.”
Key Quotes
“One of the major stories so far this week is the weakness in Gold despite so much economic disappointment all across the globe, accompanied by Greece issue.”
“The drop in prices makes Gold an under performer among the group of traditional safe haven assets. The US 10-year Treasury yield has dropped from 1.95% to 1.87%, while the Japanese Yen too has gained from 120.82 per USD to 119.33 per USD.”
“Gold, which is highly sensitive to US rate hike prospects, could have stayed weak on increased prospects of rate hike after the IMF’s downward revision of the growth forecasts.”
“Given the metal has under-performed so far, any relief on Greece issue is likely to weigh over the metal heavily. Meanwhile, the strength in the USD would continue to weigh over prices.”
“The daily chart shows, the metal is trading in a downward channel after having breached the rising trend line on Monday.”
“So far the metal has been able to sustain above its 50-DMA, although immediate gains appear capped at 1195.8 (channel resistance), followed by resistance at 1205.1 (23.6% Fib retracement of 1142.6-1224.4). The metal is likely to witness selling pressure so long as it trades below USD 1205.1.”
“Meanwhile, immediate support is seen at 1183.5 (50% Fib retracement of 1142.6-1224.4) and 1181.3 (falling trend line support). The daily RSI has turned bearish after breaching the head and shoulder pattern.”
“The metal is more likely to extend the drop to USD 1181.3-1178.5 by the weekend.”