A Technical Surge is Expected in Gold But The Primary Trend is still Bearish

Gold market reversed its earlier gains after Fed Chairman Powell’s statement that monetary policy tightening could become more aggressive if inflation doesn’t come down. 

Gold once again is near to its support zone of $1797. In MCX, rupee has also been appreciating after touching a fresh all time low yesterday which has pushed prices in MCX below 49900. There are headwinds for gold in the near term and we would advise investors to refrain from creating long positions. Gold is near to its oversold region and so expect some technical bounce back but the primary trend still remains bearish.

Read More: Silver Outlook: Silver Will Soon Drop For $19 | Neal Bhai Reports

The gold market reversed its earlier gains that monetary policy could tighten if inflation does not ease. Gold has once again moved closer to its support area of ​​$1,800. In MCX, Rupee has also strengthened after touching new all-time low yesterday, which has pushed prices below 50,000 in MCX. There are headwinds for gold in the near term and we would advise investors to refrain from taking long positions. Gold is close to its oversold zone and hence some technical upside is expected but the primary trend remains bearish.

Gold price trade steady above the $1797 level amidst fall in Dollar index, increasing geo-political tensions and resurgence of Covid cases. Although prices  did witness some pressure from the higher side after positive economic data and comments from Governor Powell. On data front, U.S. retail sales increased strongly in April, suggesting demand was holding strong despite high inflation and assuaging some fears that the economy was heading into recession; while Industrial production data also was reported better than expectations.

Governor Powell in his speech yesterday showed concerns regarding rising inflationary concerns and also assured the market that the Fed will use any tools necessary to get inflation pressure down. There were some reports regarding missile strikes from Russia at military facilities in Lviv, hence updates regarding these attacks will be important to keep an eye on.

CPI Data

Gold Focus today will be on the CPI data fro. U.K., EU and a few housing numbers from the U.S. Broader trend on COMEX could be in the range of $1775——1835 and on domestic front prices could hover in the range of Rs 49,700——50,300

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A Technical Surge is Expected in Gold But The Primary Trend is still Bearish via @goldsilverrepor
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