The precious metal has been lackluster in the initial days of this week as investors are cautious on account of U.S. Federal Reserve decision for policy stance on Wednesday. MCX Gold is trading in a narrow range of 32,896-33,082 levels from last two days and expecting no firecrackers until the Monetary Policy Committee came up with rate policy stance and guidance for future rates. The precious metal didn’t respond much concern on New York Empire Sate Manufacturing data revealed on Monday even though it was not healthy (8.60 points down than the relative level of business conditions) as the data came in a negative stance and witnessed weakest print since October, 2016 that might boost the Federal members to remain neutral or bring more cuts.
While in evening session, MCX Gold is likely to dance on the tunes of Building Permits data that gauges for change in number of new buildings permits issued by government. U.S. government revealed 1.296 million permits in previous month which were in line with forecast of economist’s poll. This week, the market is expecting a plunge in new buildings permit to 1.290 million that might thrust the preciousness of yellow metal for upside.
Daily Technical Forecast
On hourly scale, MCX Gold has been bounced back after forming a ‘Reciprocal AB=CD’ harmonic pattern, which is a bullish reversal pattern and possess high reliability. In today’s session the precious metal is expected to be more precious once it will trade above 33,200 for an upside of 33,270 and 33,357 levels. RSI is trading near 52.78 levels showing a little consolidation could take place.