Gold bottomed out post Trump asked Nancy to review stimulus bill
Gold prices edged higher in the early morning session, supported by a weaker dollar and optimism over a new U.S. coronavirus relief aid after resident Donald Trump said talks with Congress have restarted. Giving a contrary statement as compared to few days back, President Trump said there was a good chance a deal over COVID-19 relief could be reached, but gave no other details about a possible agreement. Market participants today will focus on the policy meet scheduled on the domestic front and expectation is that the central bank could maintain rates unchanged but importantly investors will be keeping an eye on the stance that RBI adopts for inflation. Gold-backed exchange traded funds added more than 1,000 tonnes of bullion worth $60 billion at current prices to their stockpile in the first nine months of 2020, driving a sizzling price rally, according to World Gold Council (WGC).
Technical: Gold trading at 1910 in asian session rose about 0.85% from the recent low 1872. H4 perceptive, we observed head and shoulders pattern where the break is needed above 1916 for the same to rise till 2000 as per pattern calculation, with a hurdle at 1922 or 200ma. Trading above 1900 is the one where one can make every dip as a buy on every dip till it holds above. Downside a break below recent low 1871 can test the 1845 which is daily support. For the day perceptive one can wait for the drop till 1900-04 zone for fresh buys witha 1902 as day support and 1893 as a pivot which tested already. Overall buy on dips is advised for the day.
Suggestion: BUY GOLD FROM 1902-04 L BELOW 1885 TGT 1922 ELSE SELL BELOW 1885 TGT 1871/1865 SL ABV 1905
Technical: Gold trading at 1910 in asian session rose about 0.85% from the recent low 1872. H4 perceptive, we observed head and shoulders pattern where the break is needed above 1916 for the same to rise till 2000 as per pattern calculation, with a hurdle at 1922 or 200ma. Trading above 1900 is the one where one can make every dip as a buy on every dip till it holds above. Downside a break below recent low 1871 can test the 1845 which is daily support. For the day perceptive one can wait for the drop till 1900-04 zone for fresh buys witha 1902 as day support and 1893 as a pivot which tested already. Overall buy on dips is advised for the day.
Suggestion: BUY GOLD FROM 1902-04 L BELOW 1885 TGT 1922 ELSE SELL BELOW 1885 TGT 1871/1865 SL ABV 1905
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