- The yellow metal initially inched higher in the early asian sessions, but rebound in the dollar and equity markets limited the upside for the metal, after data showed economic growth in china’s weakened spurring investors towards riskier assets.
- Gold is likely to come under pressure as the dollar is set to strengthen across the board due to speculation surrounding further US interest rate hike.
- Currently the commodity broken has support at 1088 and is moving downwards to test next support level located at 1081.
- To the upside, the strong resistance can be seen 1094, a break above this level would expose the commodity towards 1098 levels.
- To the downside immediate support can be seen at 1081, a break below at this level will open the door towards 1076 levels.Recommendation: Go short around 1087 with targets 1080/1076, SL 1098 Support levels: S1-1081, S2-1076, S3-1071Resistance levels: R1-1088, R2-1094, R3-1098
The material has been provided by InstaForex Company – www.instaforex.com