The weaker dollar helps the commodities to fly high taken back their safe heaven status especially Gold glitters and Silver shines again. The yellow metal rose nearly 20$ on Wednesday’s session. The bullion bulls feeding the power to commodities and commodity currency in the recent days.
The metal rose to 2-weeks high amid china data and today on Asia session, market participants focus on China May inflation figures.
Next week’s Fed’s two-day meeting grabs the most attention of the market participants.
Today’s unemployment claims and Friday’s Prelim UoM Consumer Sentiment are the only data available in this week. The commodity space looks brighter ahead of the next week’s Fed meeting.
ICBC Standard Bank analyst Kendall said that “the next few weeks, there is no reason to sell gold. The main reason is that the dollar will be lower, because of the possibility of short-term interest rates decreased, while the US economic growth is not as people expected so strong. ”
As we forecast on yesterday’s article, “If the price settles above 1253.00 further retracements would expect to 1260.00, 1263.00 and 1270.00 levels”. The price made high at 1266.00 levels.
Ahead of the China data trading resistance seems between 1268.00 and 1270.00 levels. The 100month sma seems at 1273.00 levels.
Further retracement expected if the price settles above these resistances to 1280.00 and 1283.00 levels. The earlier swing high seems at 1283.50 bulls must settle above this to aim 1300.00 again. If fails to settle then the bearish h&s formation will be in focus.