Comex gold prices tested 1306$ last night and then reverted back. Gold already broke out our major hurdle of 1302$ which we updated in our yesterday’s gold forecast and was comfortably trading above this. But then problem with tremendous rise in precious metals prices came when Italy showed kind of emergency on political side. Italy’s prime minister had to appoint an interim prime minister to restore order in Italy. Keep in mind Italy is third largest country in euro zone. This emergency took a major toll and erased all gains in euro and gave good strength to dollar index which resulted in fall of nearly 8$ from peak in yellow metal prices.
As of now 4.20am IST, Gold price comforting at 1300$ and dollar index trading at 94.40. A good support on gold chart stands at 1291$, If traders break this support and manage to sustain trade below our support. Then expect good pressure in this major commodity price upto 1286$- 1280$.
A good resistance on gold price stands at 1309$, If traders break this hurdle and manage to sustain trade above our resistance. Then expect good rise in this major commodity price upto 1318$- 1326$ today.
Gold forecast conclusion: Gold forecast is flat to positive for now, Italy seems to resolved its problem and now we are on course to take technical route. So buy in dips is our advice today till our support remain intact. We have prelim GDP and ADP Non farm employment change numbers today from US. Stay cautious.
Crude oil analysis
Crude oil prices trading flat since yesterday. Currently its cruising at 66.80$. A good support on crude oil chart stands at 65.50$. If traders break this support and manage to sustain trade below our support. Then expect good pressure in crude oil price upto 64.30$- 63$ today.
A good resistance on crude oil chart stands at 68.20$, If traders break this hurdle and manage to sustain trade above our resistance. Then expect good rise in oil prices upto 69.50$- 71$ today.
Crude oil analysis conclusion: Crude oil trend is flat to weak for now.
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