Yellow metal is consolidating at lower levels. Short-lived bulls rally did not live up to expectations. The metal price is under pressure amid mounting concerns of the Federal rate hike. Parallel support is seen at 1145.00 and 1140.00. Prices have been consolidating for 3 consecutive days. The Federal stands on a hawkish tone. We expect the Federal Reserve to hike interest rates by 0.25% in June or September. Prices are trading at a 52-week low of 1147.00. The stronger US dollar affects the metal price. The US dollar is likely to remain strong. SPDR Gold Trust positions are likely to reduce by 2.09 tons to 7501 tonnes compared to the previous day. At the today's Asian session, the metal is trading higher. We recommend selling below 1150.00 for risky traders, $1,147.00 for safe traders with targets at $1,140.00, $1,137.00, $1,124.00, $1,120.00, $1,115.00, and $1,100.00. The intraday support is found at $1150.00 and $1,147.00. Resistance is seen at $1,161.50 and $1,167.00. Weekly resistance is set around $1,168.00. Prices are trading in 30$ range.
Trade: Buying above $1,162.00 with targets at $1,166.00, $1,168.00 and $1,170.00.
The material has been provided by InstaForex Company - www.instaforex.com
