Gold Price Forecast for the week

Gold Price Forecast

Commodities
by Sachin Gupta Last Updated: 2022-07-04T10:10:04+05:30

Gold price has extended its losses in the Asian market after U.S. Federal Reserve Chair Jerome Powell said the central bank is fully committed to bringing prices under control, adding that the central bank would take any necessary move to restore price stability. Now, the investors are expecting an aggressive interest rate hike in the coming month, which could dent the yellow metal prices.

On the COMEX division, overall, the yellow metal is range bound, trading below $1840 per ounce over aggressive Fed rate hike expectation & recession fears. Geopolitical tensions & rising concerns of economic slowdown are likely to support yellow metal. Gold has support at $1825 & $1816, while resistance is at $1852 / $1865 levels.

Gold Price Chart

 

On the domestic front, MCX Gold price has traded in a narrow range with Symmetrical Triangle patterns on the daily timeframe. Also, movement below 100 SMA & Middle Bollinger Band suggests probability of further selling pressure in the near term.

The momentum indicator RSI (14) shifted below the 50 mark and Stochastic witnessed a negative crossover, which is an indication of a downward trend for the short term. So based on the above aspect, a follow up move below 50500 could drag the prices towards 50150/49800 levels. However, on the upside, 51200 would act as immediate resistance for the counter. Traders are advised to trade cautiously for the coming week and look for a sell on rise strategy from a short term perspective.

Gold Performance in May-22

 

Gold prices in the international exchanges witnessed downtrend during the month of May’22 owing to easing the fear of recession, economic uncertainty and aggressive rate hike expectation to control stubborn inflation. The above chart showcases, there has been a decline of 3.66% and 3.13% in Comex Gold future and Spot Gold respectively by the end of May, while MCX Gold prices have traded lower by 1.75% in May '22.

Important Key Levels: 
 

 

MCX GOLD (Rs.)

COMEX GOLD ($)

Support 1

50150

1825

Support 2

49800

1816

Resistance 1

51200

1852

Resistance 2

51790

1865

 

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About the Author

Mr. Sachin Gupta is a Senior Research Analyst at 5paisa, based in Mumbai. He has over 10 years of experience in Equity, Commodity research and strategies. 

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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