22-06-2018 11:10 AM
Gold prices relieved from fresh lows for the year as the dollar moved unenthusiastic on weaker U.S. economic data.
A quick draw back in the dollar from its uppermost level since last summer sustained a recovery in the precious metal. However sentiment remained unhelpful accompanied by outlook that a more forceful Fed rate-hike cycle would persist to prompt demand for the greenback.
Subsequent to the Fed's rate hike the previous week, and more aggressive outlook on rate hikes, gold prices have fallen 3%.According to traders, the discrepancy between the Fed's aggressive outlook on monetary policy related to other central banks will impel demand for the greenback.
Gold prices marked fresh low at $1263 and prices are likely to reach support line wherein a “Falling channel pattern” on the daily chart. In this pattern, prices are under selling pressure towards $1254. Upon reaching support area the prices are likely to consolidate again towards upside resistance line at $1269 which is the most resistive one. We can go fresh short entry on current level at $1269. Gold turned bearish as the long-term support has been broken out. The next support is seen at $1254 level.