Forecast of Gold for July 17, 2015 Market Analysis Review

GOLD

The yellow metal extended losses for the 4th consecutive day as well, managed to trade above the parallel support.

US unemployment claims fell last week. In the week ended July 11, an advancde figure for seasonally adjusted initial claims was 281,000 showing a 15,000 decrease from the previous week's revised level.

Today, traders eye US data. Building permits, CPI, and Prelim consumer sentiment are due. We expect positive readings for consumer sentiment and building permits.

The metal lost momentum again. Traders focus upon the Fed's rate hike.

In Fed William words "US economy strong sign that the Fed may raise interest rates in 2015".The possibility of the US inflation rate rose to 2 percent above the end of 2016 was 50%.Compared to last week, the situation in Greece, "a little less worrying."

BlackRock CEO Larry Fink says "Fed rate hike will make more money into the bond market, rather than less. The Fed is expected to begin normalizing interest rate path".

Barclays says, if gold prices fell below $ 1,100.00 an ounce, the gold production will be vulnerable.

The metal has been reaching lower highs and lower lows for a while, consolidating on a lower edge of a large bearish head & shoulder. In all time frames, the precious metal lost all moving averages. On the higher side, $1,165.00 and $1,175.00 act as strong resistance levels to watch. A daily close above $1,175.00 lighten bullish views. The parallel support is found at $1,142.50.

We advised a daily close below $1,148.00, which should open gates to re-test the previous lows of $1,142.50, $1,139.00, and $1,135.00 initially extending deeper later. At yesterday's session, the metal closed below 1148.00 hitting 1142.00. From here on, we expect selling to accelerate only below $1,139.00

At today's Asian session, the metal is trading at $1,144.00 compared to Tuesday's closing price of $1,145.00. Intraday support is found at $1,142.00 and $1,139.00. Resistance is seen at $1,145.00, $1,148.00 and $1,151.00. At yesterday's session, we advised selling below $1,146.00 towards $1,144.00 and $1,142.00 and even $1,139.00. The metal reached a low at $1,142.00. A daily close below $1,139.00 opened gates to $1,129.00 and $1,122.00. Today we do not expect the metal to fall below $1,138.00. In the H1 chart, we can observe mild positive divergence; mild rebound is likely to take place during a day or two.

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