FxWirePro: Gold Weekly Outlook

Gold was one of the best-performing assets in the previous week and jumped more than $60 from close of $1341.05. The major events fed monetary policy. The  ECB President Draghi speech and escalation of tension in the Middle East have supported the yellow metal prices. It hits high of $1411 and is currently trading around $1404.43.

The Fed has kept its interest rates unchanged and removed the word "patience" from its updated policy statement. The Dot plot shows that out 18 members 8 are expecting a rate cut in 2019. The European Central Bank President Draghi said that there might be the possibility of stimulus through rate cuts or asset purchases if inflation doesn't pick up.

US dollar index has lost more than 100 pips after Fed policy and is trading below 200- day MA 96.55. The next major support is around 96 (300- day EMA) and further weakness can be seen below that level.

Technically, near term resistance is around $1411.75 high made on Jun 21st, 2019 and any bullish continuation only above that level. Any break above that level targets $1328/$1340.

On the flip side, near term support is around $1380 (23.6% fib of $1275 and $1411.70) and any break below confirms minor weakness and a dip till $1360-65 (resistance turned into support)/$1350/$1341 (low made after Fed meeting).

It is good to buy on dips around $1380-82 with SL around $1360 for the TP of $1428.

Additional levels

$1329-$1332 (Jun 17th low and 20- day MA)

$1319- Jun 11th 2019 low