A Quick Short Term Forecast of Gold, Let’s Take a Look; June 14, 2021
The gold has started a new week on a lower note and hits fresh 4 – week low at $1,844 mark. The key reason behind continuous downfall is robust U.S. Economic Indicators released last week. Gold’s continuing fall is likely to be delayed reaction to the U.S.’s Inflation Results. The other key event will be FOMC Funds Rate Decision due on Wednesday. As we have observed that many Central Banks have begun reducing asset purchases in their balance sheet so there’s strong belief that it is high time for the Federal Reserve to do so as well. On the other side, U.S. Treasury Yield is also rising. This is the reason markets expect Fed policymakers to discuss tapering and make subtle shifts in their language to prepare for that eventuality.
U.S. data released last week:
- The gold trades extremely lower on Monday and stabilizes below $1,850 mark.
- The pair made intraday high at $1,878 and low at $1,844 mark.
- A day chart is bullish but H1 chart with triple EMA confirms down trend for the time being.
- A sustained close below $1,844 on H1 chart will check further supports.
- Alternatively, consistent close above $1,854 will tests key resistances too.
Take a look and do trade wisely!