Comex gold futures hit a fresh four-week low, as investors liquidated their long positions on a firmer dollar, while expectations of more US rate hikes this year also weighed on the market.

Comex gold futures are moving in line with our expectations. As mentioned in the previous update, prices could now consolidate in the $1,290-$1,320 an ounce before edging higher towards $1,352-55 zone. As expected, prices corrected lower towards $1,310.

A crucial long-term trend line breakout at $1,343-45 has revived bullish hopes for $1,430-35 or even higher in the coming months. Immediate supports are in the $1,297-1,300 zone presently. Only a direct fall below $1,295 could postpone the expected bullishness. Such a fall could see prices testing the next support at $1,275-80 again.

In the coming week we expect $1,300 to hold for a push higher towards $1,373-75 or even higher to $ 1,390-95. RSI is in the oversold zone now indicating a possible correction in the offing. The averages in MACD have gone above the zero line of the indicator again, indicating a bullish reversal. Only a cross over again below the zero line could hint at a reversal in trend to bearish.

Therefore, buy Comex gold on dips around $1,300 with the stop-loss at $1,290 targeting $1,345 followed by $1,374.

Supports are at $1,300, 1,285 and 1,260. Resistances are at $1,327, 1,345 and 1,374.

The writer is the Director of Commtrendz Research. There is risk of loss in trading.

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