Gold -0.03% price is expected to trade higher in year 2018 as US national debt is rising. US national debt and gold -0.03% have positive correlation. Currently US debt is around $20 trillion and each citizen debt share is around $61000.
US fed monetary policy is another factor which affects gold -0.03% prices. Market anticipate fed to hike interest rates three times in 2018. But previous monetary policy shows that inflation is major cause of concern and any decline in further inflation will stop fed from increasing rates three times in 2018.
On the higher side, gold -0.03% is facing strong resistance at $1287 (20- W MA) and any break above will take the yellow metal till $1300. Any close above $1300 will take the gold -0.03% to next level till $1324 (78.6% fibo)/$1357 (Sep 2017 high)/$1375.
The near term major support is at $1260-63 (200- day MA and 55- day EMA ) and any violation below will drag the metal to next level till $1232-38 (50% fibo)/$1200. Overall bullish invalidation only below $1200. Any break below $1200 will drag the gold -0.03% till $1122(Dec 2016 low).
It is good to buy on dips around $1250-55 with SL around $1200 for the TP of $1357/$1375.
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