Gold prices inched higher at a nine-month high on Friday, supported by resurgent safe haven demand and growing uncertainty over the path of U.S. monetary policy.
MCX GOLD prices surged nearly 0.46 yesterday, making a new multi week high in tandem with a sharp drop in stock markets as weak corporate earnings and softer-than-expected economic data pushed up concerns over a looming economic slowdown.
Earlier, yellow metals prices gave up some gains and retreated from day’s high 56850, trading at 56687. But markets remained uncertain over where U.S. interest rates would peak, given that Fed officials offered differing takes on the level, ranging from just below 5% to close to 6%.
Comex Gold Future fell to $1,930.90 from day’s high 1939 an ounce close to their highest level since April 2022.
Now focus will shift on Economic data from Canada and after that US.
At 7.PM- Canada Core Retail Sales m/m (forecast -0.6% as compared to previous reading 1.7%) and Retail Sales m/m (forecast -0.5% as compared to previous reading 1.4%) which may lead some correction in Metals prices as both data’s are expected to be lower.
At 8.30 pm – US Existing Home Sales (forecast 3.95M as compared to previous reading 4.09m) expected to have negative impact on dollar
We expect that Yellow metal prices may react volatile based on the above economic data forecast.
Technical View:
Recent price action resulted in formaiton of shooting star candle stick on above hourly chart which is creating a probability for trend reversal in near future. But, MCX GOLD would have to break below its immediate support 56560 in order to next support 56450-56350. Alternatively, momentum pullback could expect towards immediate resistance 56860.00.
Massive resistance witnessed at 56920 a break above only will open the door for next resistance 57050-57280. Traders can make short position on rise unless prices gives a breakout of 56920 on closing basis.