Gold price steadied after two days of losses in middle of the week but held below $1,300 an ounce, near a four-week low, on a stronger US dollar and fears that the Federal Reserve could hike U.S. interest rates sooner than expected.
Fed Chair Janet Yellen said on Tuesday the U.S. central bank could raise rates earlier or faster if hiring and wages take off in an unexpected way, though she signalled that the Fed will keep monetary policy loose until jobs data shows the effects of the financial crisis are completely gone.
For next week, we can expect COMEX Gold August Futures prices to trade on negative note as fears that the Federal Reserve could hike U.S. interest rates sooner than expected. Technically COMEX Gold is sustaining below the important level of $ 1300 an ounce and if it sustain below the level of $1280 then it can test the levels of $1260 and $1240 on the lower side.
If MCX Gold August futures sustains below 27450, then downside movement can be seen till the levels of 27250 and 27050.
By Vivek Gupta, Director Research, CapitalVia Global Research Ltd