Gold rallies on inconsistent economic growth in the US and Festival demand in China. Traders eye at the January 28-29 Fed meeting. On the other hand, Chinese seasonal demand increased, due to the Spring festival that will begin on January 31. In India the wedding season has started, due to which the demand for physical gold has increased. The Dollar shows a good strength trading above 81.0 and may strengthen further if this week Unemployment claims and existing home sales result will positive. Strong dollar is a negative sign for Gold ad it may drag yellow metal towards down side.
In the daily charts oscillators produce a sell signal. Due to the oversold conditions prices will pull back a little bit. Overall trend is down. In the weekly basis, yesterday gold took support at the level $1,235 which is equal to last week's low of $1,234.
Prices rebound from the level of $,1235.30, down side limited due to over sold conditions in the hourly charts. Oscillators gave a buy signal with sl 1,234. The rest of the week, if gold save its weekly support at the level $1,234, we see pull back in the charts towards the resistance zones. Prices trading below 21DEMA, further up move could possible only above 1,245. We still stick to sell on rallies strategy.
Intraday
Support- $1,239 $1,234
Resistance $1,245 $1,259
Intraday Strategy-
Buy with sl $1,234 for targets T1-$1,244 T2-$1,250 T3-$1,255, cmp $1,241. (t2 and t3 will come only above prices trades above $1,245)
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Gold holds at weekly support, sell on rallies . Thanks for your support on Gold holds at weekly support, sell on rallies
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