Gold forecast today
Gold price trading flat since yesterday. In our yesterday’s gold forecast we mentioned positive movement. Xauusd trading in 5$ range from 1297$ to 1302$ since yesterday. Despite a big crack from dollar basket from 94.55 to 93.60, gold price did not move. Gold took a small jump when ADP non farm numbers came worse than expected. ADP numbers came at 178K vs 163K previous but forecast was 191K.
Dow Jones shaved its gains in after session, Currently trading at 24620. Almost 80 points down from its peak of near 24700. Euro gained almost 80-100 pips yesterday, dollar crashed yet gold price stayed in a small range of 5-7$. Prices are waiting for major events tomorrow. Non farm employment change, Unemployment rate and President Trump take on tariff on steel and aluminium which he slapped in March. He will have his say tomorrow. Canadian foreign minister already warned retaliatory tariff.
Fears of trade war again looming as Trump might not be flexible in tariffs and we may see retaliation from Mexico, Canada or any other European country. Trump also considering more than $45 billion tariffs on china imports ( Auto imports).
A good resistance on this major commodity chart stands at 1309$, sustain trade above this may result in 1317$- 1326$ in xauusd price.
A good support on this major commodity chart stands at 1291$, sustain trade below may open door upto 1284$- 1275$.
Gold forecast conclusion: Gold forecast is flat for now, on chart its positive so its better to stay on positive side but no fresh trade should be done without proper stoploss as we have major events ahead tomorrow.
Read our Euro and crude oil analysis here
Dollar Index analysis
Dollar Index cracked after Italian political drama came under control. Euro surged beautifully, pushing dollar index lower. Currently dollar index trading at 93.66 almost at lowest point of the day. A good support on chart stands at 93.20, Sustain trade below may result in 93- 92.70 today.
A good resistance on dollar chart stands at 94.10, Sustain trade above this may result in upto 94.40- 94.70 today.
Dollar Index analysis conclusion: Dollar trend is flat to weak for now.
Read our weekly forecast and analysis here