22-05-2018 11:15 AM
Gold prices rose on Friday as a weaker dollar and falling U.S. Treasury yields supported demand for the precious metal but gains were limited as traders remained cautious of a bounce back in yields.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose to a five-month high of 93.74 before paring some of its gains.
The gold daily chart has formed “Rising channel” pattern and has retested the channel’s support line again at 30900. The previous three session prices sustained above the support line, behind the reason USDINR pair trading at $68 range which is the nearby lifetime high. That’s why the correlation values MCX gold futures sustain above the support line. The prices are expected to break below the support line at 30900 anytime. The immediate downside rally could test 30800-30600 levels. Maintaining stop loss is necessary. Gold prices are entitled to caution trading while USDINR decreases but yesterday, the international Gold prices reached a fresh low at $1280. The gold market is in short-term bullish momentum, testing all the way through 31250-31300 levels in the upcoming sessions.