Comex gold futures, moved higher on Thursday to its highest in a week as the Bank of Japan held policy steady, boosting the yen versus the dollar, and after the Federal Reserve signalled it was in no rush to tighten monetary policy.

The Fed left interest rates unchanged after its latest meeting and, while keeping the door open to a hike in June, showed little sign it was in a hurry to tighten policy amid an apparent slowdown in the US economy.

Gold prices seem to have found a floor, with rising prices seen in the coming year and next, as concerns over the pace of the US monetary policy tightening fade. The biggest threat for the upside now is from equity markets, which can rally higher on the back of the Fed move.

Comex gold futures moved perfectly higher as per expectations. As mentioned in the previous update, since the big picture continues to display neutral to bullish tendencies, we are hopeful that important supports could hold for a push higher again. Chances for a break above $1,300 levels still look good.

Prices are once again close to near-term resistance at $1,260-65 levels. A close, above here could be the trigger for a move above $1,300. Potential targets in the coming weeks are near $1,351 followed by $1,378 levels now. It needs to break out of this broad range on the upside to keep the bullish expectations intact. However, unexpected fall below $1223 could hint at a possible head-and-shoulder pattern break that could hint at bearishness ahead. Such a move could push prices lower towards $1,160-65 levels, which we do not favour presently. Favoured view in the short-term still expects prices to find supports on any dips to around $1,240-45 and then move higher again.

It is most likely that the fall from the all-time highs at $1,925 to the recent low of $1,088 so far, was either a possible corrective wave “A”, with a possibility to even extend towards $1,025-30 levels or a complete correction of A-B-C ending with this decline. Subsequently, to this decline, a corrective wave “B” could unfold with targets near $1,375 or even higher. After that, a wave “C” could begin lower again. Alternatively, we can also expect wave “B” to extend to $1,476 levels. If the current decline as a whole from $1,920 can be considered as a fourth wave, then the fifth wave could begin and cross $1,700 in the long-term. As prices have broken certain important resistances and shows impulsive tendencies, we will now stick with the above count. RSI is in the neutral zone now indicating that it is neither overbought nor oversold. The averages in MACD are still above the zero line of the indicator again, indicating a bullish reversal.

Therefore, Buy Comex gold on dips to $1,245-50 stop loss $1,227 targeting $1,285 followed by $1,310.

Supports are at $1240; $1215; $ 1,195; and Resistances are at $1265; $1,285; $1,351.

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

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