The precious metal was lackluster in the initial days of this week as investors were cautious on account of U.S. Federal Reserve decision for policy stance on Wednesday. But the neutral stance from Federal’s policymakers fueled the precious metal prices and made it more precious at it crossed the psychological resistance of 34,000 levels while a dovish tone for further policies acted as a cherry on the cake. Weaken Non-Farm payrolls, flat core retail sales, falling GDP numbers, slippage in Producers Price Index and strong fall in crude oil prices due to weaken demand have acted as a catalyst to thrust the Fed’s chair Jerome Powell for keeping the borrowing costs unchanged and pushed gold prices to upside.
In evening session, MCX Gold is likely to dance on the tunes of Estimated Home sales data that gauges for change in the annualized number of existing residential buildings that were sold during the prior month. U.S. Commerce Department came with a drop to 5.19 million on May 21 and the market participants are expecting a surge to 5.29 million that might halt the gold rally.
Daily technical Forecast
On hourly scale, MCX Gold has witnessed a steep rally after giving a breakout of ‘Symmetrical Triangle’ pattern. The precious metal is sensing resistance near 34,280 levels but a break above these levels would thrust it to a high of 34,463 levels. Stochastic oscillator has given a bullish crossover after the market participants were busy in some long liquidation. RSI is trading at 65.33 levels and hinting for more upside showing no signs of divergence and oversold.