Gold missed buying momentum at yesterday's session and closed with losses. The metal erased most of its Friday's gains yesterday.
The output of the world's largest gold ETF, SPDR Gold Trust holdings, stays flat at the level of 680.15 tons compared to the day before.
HSBC: Federal Reserve coming closer to the interest rate hike, a stronger dollar, low inflation, China's and India's weak demand for physical gold and other factors weigh on gold prices.
CFTC data shows that speculators net short positions in gold futures and options for the first time during the week ended July 21.
Ahead of tomorrow's FOMC event the metal strikes in a tight range between $1,085.00 and $1,119.00.
Technical view: The yellow metal was trading at $1,093.00 during today's Asian session compared to Thursday's closing price of $1,093.60. The weekly trading pattern is framed between $1,085.00 and $1,119.00 on a closing basis. A close on either side will lead to more room to trade. In the weekly chart, the metal managed to hold the channel support trend line at $1,085.00 on a closing basis. The metal has been reaching lower highs and lower lows breaking below the large bearish head & shoulder pattern.
The weekly support is found at $1,085.00, $1,077.00and $1,073.00. A weekly close below $1,085.00 opens gates to $1,068.00, $1,045.00, and $1,005.00. In the monthly chart, strong support zone is seen between $1,045.00 and $1,032.00. The metal fell below the 14-year ascending trendline in the monthly chart. It managed to close above $1,085.00 on a daily closing basis for five days.
Intraday: Intraday support is found at $1,091.00 and $1,087.00. Resistance is seen at $1,095.00, $1,098.00, and $1,105.00. A daily close below $1,077.00 opens gates to $1,055.00 during this week.
At yesterday's session, we advised intraday buying above $1,102.00 with a target at $1,105.00 and in the extreme case at $1,109.00; the metal reached a high at $1,104.70.
In the H1 chart, the metal made a double top at $1,105.00. Mild-buying looms above $1,105.00. The metal has been testing its fate at $1,185.00.
Intraday selling is available below $1,086.00 with targets at $1,084.00, $1,082.00, $1,080.00, and $1,077.00. Panic is likely to be triggered below $1,077.00. Use a rise to sell this week. Buying is available above 1098.00 with targets at $1,100.00, $1,102.00, and $1,104.00. A strong pullback is expected above $1,105.00 towards $1,109.00 during a day.
