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Gold - Weekly Outlook: June 17-21

Release Time:2019-06-17 05:56

Market Commentary 

Gold prices inched up on Monday ahead of the Federal Reserve’s latest monetary policy meeting due later this week.Gold futures for August delivery, traded on the Comex division of the New York Mercantile Exchange, edged up 0.1% to $1,345.45 by 12:15 AM ET (04:15 GMT). 

The Fed’s meeting on Wednesday is expected to be the biggest event for the yellow metal this week. No rate cuts are expected on Wednesday’s meeting, but markets have steadily been increasing bets for cuts throughout 2019 as concerns over the negative impact of U.S.-China trade tensions and signs of weak job creation and muted inflation in the American economy were seen to support a more dovish stance.On June 4, Fed Chairman Jerome Powell said the central bank would act "as appropriate" to address risks from the trade dispute.In general, gold benefits from lower interest rates that lower the opportunity cost of holding the non-yielding bullion. 

In other news, heightened geopolitical risks in the Middle East that involved an attack on two oil tankers in the Gulf of Oman was cited as a tailwind for the safe-haven gold today. The U.S. blamed on Iran for the hits as Secretary of State Mike Pompeo said it was “unmistakable” that Iran was responsible for the attacks.However, he noted that “President (Donald) Trump has done everything he can to avoid war. We don’t want war.” 

Technical Commentary 

Any close in Gold above 1350 will push it towards 1375 and any close above 1405 will indicate start of New Bull market .Follow the levels given below and create your own trading plan. 

MAJOR SUPPORT LEVELS ON CLOSING BASIS ARE:: 

1320-1305- 1270-1265-1255-1236-1220 MAJOR RESISTANCE LEVELS ON CLOSING BASIS ARE :: 1366-1380-1396-1405