GOLD

The yellow metal is under pressure, after the comeback of the US dollar and traders are very optimistic regarding the US economy. Bets are raised against the interest rate hike. All these factors put gold under pressure. The metal is trading at a 6-week low. It has been making lower lows and lower highs in the weekly chart for 3 weeks. The 50WSma is acting as strong weekly resistance at $1,296 levels. Until the metal trades below this, the weekly trend looks down with the near support at $1,280, $1,275.70, and $1,272-$1,270. On the weekly basis, the metal is trading between $1,297-$1,280 levels. If it hits the support at $1,280, it can extend its fall up to $1,272-$1,270 levels and on the north side, if it breaches the resistance, it can gain up to $1,300, $1,305 and $1,310 levels. We expect the correction will complete when it comes near $1,272-$1,270 levels.

Weekly

Resistance: $1,297, $1,305, $1,311

Support: $1,285, $1,280, $1,272-$1,270

If the metal hits and closes below the $1,240-$1,231 levels, the bears may take the pair towards a new low by the end of this year. Until the metal holds $1,240-$1,231 on a weekly closing basis, the new high will be possible in the rest of the year.

Intraday cmp $1,289

The metal is trading below the 21hrSma, 34hrSma and 12ema. But the 200DSma in the daily chart, $1,285 support level gave enough support to hold in yesterday's session. For an hourly trading basis, we recommend to buy above $1,290 for targets at $1,294, and $1,296.50.

Strong hourly momentum will take place above $1,294 and weekly above $1,297

Support: $1,285, $1,280, $1,272

Resistance: $1,290, $1,294, $1,297

Hourly trade- buy above $1,290