Gold prices set to decline, further upside to be limited- Short around 1098, targets around 1088/1080, SL 1105
The yellow metal has declined to trade around 1095 levels, after posting its biggest gain in two weeks. The commodity came under pressure after ECB President Mario Draghi hinted the central bank could launch further stim…
The yellow metal has declined to trade around 1095 levels, after posting its biggest gain in two weeks. The commodity came under pressure after ECB President Mario Draghi hinted the central bank could launch further stimulus. After the comments by ECB the yellow metal slipped from 1104 to hit low at 1093 levels.
Further upside is expected to be limited around 1098 levels as the resistance level located at 1100 is likely to hold the bulls from advancing further above and bring decline towards lower levels.
To the upside, the strong resistance can be seen 1100, a break above this level would expose the commodity towards 1105 levels.
To the downside immediate support can be seen at 1092, a break below at this level will open the door towards 1086 levels.
Recommendation: Go short around 1098, targets around 1088/1080, SL 1105
