Gold price staggered near its lowest in over three months on Wednesday, hurt by consecutive losses in the last seven sessions as a robust dollar...
Gold price staggered near its lowest in over three months on Wednesday, hurt by consecutive losses in the last seven sessions as a robust dollar and expectations of higher U.S. interest rates curbed appetite for the metal.
The dollar continues to sky-rocket on expectations of an interest-rate hike from the U.S. Federal Reserve by the time the Federal Open Market Committee meets in June. The U.S. Bureau of Labor Statistics also said the U.S. economy added 295,000 jobs in the month of March as the unemployment rate fell to 5.5%.
In China, meanwhile, markets reacted to government data which indicated that Chinese inflation for February rose to 1.4%, above expectations of 0.9% inflation. A month earlier, inflation in China reached 0.8%.
China is the second largest purchaser of the precious metal in the world, behind India.
In upcoming days, we can expect COMEX Gold April futures prices to trade on negative note on the back of FED concern. Technically If COMEX Gold breaks the level of $1150 then it can test the level of $1131 and $1105 on downside. If MCX Gold April futures sustains below the levels of 25700 on downside then bearish movement can be seen till the levels of 25500 and 25200.
By Vivek Gupta, CMT – Director Research, CapitalVia Global Research Ltd