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Gold weekly analysis 12 to 16 June

Gold weekly analysis 12 to 16 June

 

After the rise for four consecutive weeks, the gold declined after hitting its highest level in nearly seven months at 1295 before retreating and closing at the end of the week at 1266.

This week, the markets are looking forward to a number of important data in the American agenda,

Tuesday: Producer Price Index (PPI) is will be released on a monthly base. The index is expected to record 0.2% higher than the previous reading of 0.4%.

Wednesday: We can call it the big day. On this day a number of important data will be released which may have a big impact on the movement of gold but most important:

The US interest rate is expected to rise by 25 points from 1.00% to 1.25% and also the Federal Reserve press conference following the interest rate decision and interest statement The Fed's economic outlook is also released.

Friday: The Building Permits Index is expected to reach 1.25 million versus the previous reading of 1.23 million. The first reading of the Consumer Confidence Index will be released, with expectations of 97.2.

Technically

Staying below 1270 level may cause a fall towards the 50 SMA at 1256 and if this level is breached it could extend to 200 SMA at 1234 and if this level breaks, the decline may extend towards the 100 SMA at 1214.

If gold crosses 1270 level, it could push it towards 1295 and if it crosses this level it could extend towards 1318 and then 1335.

 

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