FxWirePro: Gold might test $1160 area

While fundamental is still against Gold, given a rate hike from FED, looming ahead and low inflationary environment. Moreover low volatility environment is not suitable for gold bugs, as gold remains clearly out of portfolio managers' favor as risk hedge.

However, Gold is showing some potential to move up over the coming days/weeks and current risk -reward favors buying gold.

This week heavy with risk events, might push gold higher if Friday's NFP report pushes dollar down.

Trade idea -

• Buy Gold at current price of $1128/troy ounce, targeting $1155/ troy ounce area.
• Stop loss for this trade stands around $1115 area, while gold bugs might wait for the key support break around $1108 area.
• Initial target for Gold stands at $1145 and final target around $1155 area.

Kindly note this is a very short term position and may not fall in line with fundamentals. It is not advised to hold longs after break of support.