On Monday morning, MCX Gold was down by 0.15% and currently trading around 50568. Today, we might not witness much volatility in the market due to a lack of specific events.
Investors or traders are now keeping an eye on the FOMC meeting. Let’s see what they have decided about a hike in interest rates.
As I said in my earlier blog the market has already tested its 0.50 BPS. Furthermore, if FED raises to 0.75 BPS then we may witness a downside pressure in Gold.
But what if the FED raises 0.25 BPS?
Now if this happens on 27th July, then we may witness an upside move in the yellow metal.
In the meantime, we are waiting for tomorrow’s Consumer Confidence data which may impact the prices of Gold.
But still, the market is revolving around the hiked interest rate percentage. If yesterday the consumer confidence data improves then there would be a hope of a hike in interest rates by 0.25 BPS.
Generally, Gold moves opposite to Dollar. But, today both gold and dollar started trading in a red zone.
The European Central Bank also raises the interest rate by 0.50 BPS. Furthermore, they also said that they might increase in the future too till the inflation rate goes down to 2 percent.
Technical Analysis of Gold
If we look at the weekly chart of Gold, then a triangle pattern is formed which signifies that a particular commodity is open for both side’s breakout. Precisely, in a current scenario, the MCX Gold is not in a situation to make a new high or new low. Consequently, Gold is open for both side levels till the FOMC meeting.
Gold has a major support of 49500 and if that level breaches then we may favor our traders to go for short selling. On the contrary, the resistance zone is between 51300—51800.
A good buying opportunity will occur between 50150—49900.
Low-risk traders can buy gold mini as per the gold.
We are hoping for leniency by FED in interest rates. If this anticipation proves right, then we may see a sharp upside rally in MCX Gold soon.
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