Gold Is At Sweet Spot For Continued Buying On Dips

Posted: May 31, 2017 in Uncategorized

Its short term target is to break up $1300. It mid term target is to go into $1400 zone. Its mid-long term target is to hit $1550 critical resistance before consolidation at $1450 region to build a support for a rally to break out $1900-$2000 upwards. Gold remains as a buy-on-dip with a target of all time historic new high of more than $1900-$2000.

Gold futures for June delivery on the Comex division of the New York Mercantile Exchange fell 0.16% to $1,260.11

Overnight, gold retreated from a one-month high, despite an increase in safe haven demand amid ongoing geopolitical concerns in Europe while hawkish comments concerning U.S. interest rates from a top Fed official capped upside momentum.

Gold prices dipped at the start of European trade on Tuesday, as concerns about geopolitical uncertainty in Europe eased somewhat, following the release of the ICM poll for The Guardian, showing the Conservative Party held a healthy lead of 45% compared to Labour’s 33%, ahead of the general election scheduled for June 8.

Gold is sensitive to moves higher in both U.S. rates and the dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.

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