Weekly Outlook on - 18 Nov 2022

Weekly Outlook on Gold- 18 Nov 2022
Weekly Outlook on Gold- 18 Nov 2022

Commodities
by Sachin Gupta Last Updated: 2022-11-18T16:39:05+05:30

                                                              Weekly Report - GOLD

Weekly Report - GOLD

 

Gold prices traded higher for the second week in a row. The price made high at 53200 on Wednesday session after that the recent rally fizzled out as several U.S. Federal Reserve officials’ suggested that the interest rate would continue to rise as per market expectation that boosted the dollar again and capped further gains in yellow metal.

Gold prices also showed some profit bookings on Thursday after strong gains in the last two weeks. Waning fears of an escalation in the Russia-Ukraine conflict also sapped safe heaven demand for the yellow metals, after NATO members said a missile that killed two people in Poland was likely fired by Ukrainian forces defending themselves against a Russian missile barrage.

COMEX Gold prices corrected from the highs of $1791.80 and traded near to a weekly low on Friday’s session.  The bullish momentum in prices witnessed after the softer than expected U.S. inflation data that kept the Dollar index & Treasury yield cooled off and boosted yellow metal. On a weekly chart, the price witnessed a good reversal from the support of $1618 levels and rallied well in the last two weeks. The prices moved above the 200-week SMA & psychological levels of $1700. In the daily timeframe, the gold price has confirmed the breakout of Double Bottom patterns that suggests further upside moves in the counter.  Moreover, the price has shifted above the Ichimoku Cloud formation & a 100-day EMA, which supports the bullish momentum for the medium term. On the downside, the price may find support at 1738 & 1715 levels, while on the upside it may face, the resistance at $1800/1825 levels.

On the MCX front, gold prices gained by 1.1% on a weekly basis after made high at 53200 levels. The price has confirmed the Symmetrical Triangle breakout and traded above the prior resistance of Rs. 52620. However, prices witnessed a slight correction from the weekly high but are hovering above the three-month high. A momentum indicator RSI (14) indicates positive crossover on the daily chart that suggests bullish strength further. On a weekly scale, the price reversed from the support of 50-week Simple Moving Averages, which shows upside moves for the near term. So, based on the above technical structure, we are expecting a bullish trend in gold for the coming weeks. Hence, traders are advised to buy on dips as volatility can be seen ahead of the economic data. On the downside, the price has support at 52300/52000 levels, while on the higher side, resistance is around 53200/53600 levels.

 

Important Data:

Core Durable Goods Orders m/m

USD

Unemployment Claims

USD

Core Durable Goods Orders m/m

USD

New Home Sales

USD

FOMC Meeting Minutes

USD

ECB Monetary Policy Meeting Accounts

EUR

 

Important Key Levels:

 

MCX GOLD (Rs.)

COMEX GOLD ($)

Support 1

52300

1738

Support 2

52000

1715

Resistance 1

53200

1800

Resistance 2

53600

1825


 

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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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