Weekly Outlook on Gold - 16th September 2022

Weekly Outlook on Gold
Weekly Outlook on Gold

Commodities
by Sachin Gupta Last Updated: 2022-09-16T19:30:15+05:30

Gold prices traded near to a two-year low on Friday's session and were set for a steep weekly fall as higher expectations of an aggressive interest rate hike by the Fed reserves boosted the dollar and dented bullion’s appeal. Signs of strength in the labor market and slight changes in the inflation numbers also pointed to the Fed having enough space to keep raising rates at a fast pace. Meanwhile, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.15% to 962.01 tonnes on Thursday.  

 

                                         GOLD-WEEKLY OUTLOOK

 

GOLD WEEKLY OUTLOOK


Overall, the gold prices turned bearish and breached the most important support of $1680 on the Comex division. The prices were hovering near $1665 on Friday with a 3.5% down fall on a weekly basis and that move may continue as market participants are expecting at least a 75bps rate hike in the coming week. On a weekly chart, the price has slipped below 200-week Simple Moving Averages and Horizontal Line support that suggests a bearish move for the near term. However, all important key indicators like MACD, Stochastic and CCI shifted under oversold territory with no sign of recovery. On the lower side, the price may find support around $1655 and $1640 while, on the higher side, $1685 & $1700 would act as a resistance zone for the near term.    

                                                 Gold performance for August’22

 

Gold performance for August’22


On the MCX front, the gold prices were trading at Rs. 49000 on Friday's session, corrected by 3% from the prior week's close. On the daily time frame, the price has dragged below the support of 200-days EMA and continued the breakdown of the Symmetrical Triangle pattern that indicates bearish movement in the counter. On a weekly scale, the price has moved below 50% Retracement Levels. So, based on the above technical structure, we are expecting a sideways to bearish move in the gold. Traders are advised to follow the sell on rally strategy for the coming week. Also, keep closely watch on FOMC statements, held on 21st Sep.22. On the downside, it may find support at 48500 or 48000 levels. While, on the upside, 50000 & 50600 will act as resistance for the gold. 
 

Important Data:

FOMC Statement

USD

Monetary Policy Summary

GBP

Unemployment Claims

USD

Fed Chair Powell Speaks

USD

 

Important Key Levels:

 

 

MCX GOLD (Rs.)

COMEX COPPER ($)

Support 1

48500

1655

Support 2

48000

1640

Resistance 1

50000

1685

Resistance 2

50600

1700

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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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