Weekly Outlook on Gold - 19 August 2022
![Weekly Outlook on Gold Weekly Outlook on Gold](https://storage.googleapis.com/5paisa-prod-storage/files/2022-08/GoldStock%20to%20BuySwing%20Trading%20Template%20%281%29_1.jpg)
![Sachin Gupta Sachin Gupta](https://storage.googleapis.com/5paisa-prod-storage/files/2022-07/sachin-gupta.jpg)
Last Updated: 15th December 2022 - 06:33 am
MCX Gold traded lower throughout the week and set a weekly low on Friday's trading session as a stronger dollar and expectations of more rate hikes by the U.S. Fed dented safe haven demand.
![Gold Weekly Outlook](https://storage.googleapis.com/5paisa-prod-storage/files/inline-images/Gold%20Weekly%20Outlook.png)
The dollar index was boosted after the comments on an interest rate hike by Federal Reserve officials that the federal bank would continue at a sharp pace of rate hikes this year to control stubborn inflation. However, the weak industrial production & retail sales data from China, higher inflation numbers in the U.K. and the tensions between the US-Taiwan raised concerns of sluggish demand & fear of recession.
COMEX Gold futures dragged more than 2.3% on a weekly basis and slipped to a three-week low on Friday's session. The spot prices were trading near $1754 per ounce, after falling to its lowest since July 29 at $1752.77 levels.
On a weekly chart, the COMEX Gold future has formed a Bearish Engulfing Candlestick pattern that suggests weakness in the counter. Moreover, the price has also tested the resistance at 100-weeks Exponential Moving Averages and settled below it. On the downside, gold has support at $1727 & $1696. While on the upside, the resistance is at $1800 / $1824 levels.
On the domestic front, MCX Gold prices were trading around Rs. 51520 on Friday's session after setting a low at Rs.51436 with a 2% weekly downfall. On a weekly chart, the price failed to breach the prior resistance at Rs. 52620 levels and witnessed selling pressure. On the daily timeframe, the price has slipped below the 38.2% Retracement Levels and chasing towards 23.6% at 51058 levels.
So, based on the above technical structure, we are expecting a sideways move in the Gold for the coming week. On the downside, it may find support at 51000 or 50800 levels. While, on the upside, 52000 & 52620 will act as resistance for the Gold.
Flash Manufacturing PMI |
GBP |
Flash Services PMI |
USD |
Core Durable Goods Orders m/m |
USD |
Prelim GDP q/q |
USD |
MCX GOLD (Rs.) |
COMEX GOLD ($) |
|
Support 1 |
51000 |
1727 |
Support 2 |
50800 |
1696 |
Resistance 1 |
52000 |
1800 |
Resistance 2 |
52620 |
1824 |
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