The precious metal have been in the grip of bulls last week after Fed chair Jerome Powell came up with a neutral stance on borrowing rates with a dovish tone for further projections in order to curb the economic slowdown in united States. MCX Gold has added 1,881 points or 5.7% in last 5 days and given a break above the 1.618% Fibonacci Extension on daily scale. The precious metal’s rally is not expected to halt in coming trading’s sessions as U.S. President Donald Trump has outcry on Federal Reserve to cut interest rates rather than a stable stance. Recently, U.S. Commerce Department came with a surge to 5.34 million on June 21 in Existing Home Sales data but failed to halt to gold rally due to lack of fundamental development.
In evening session, MCX Gold is likely to dance on the tunes of measures the annualized number of new single-family homes that were sold during the prior month and tends to impact more from Existing Home sales as two are highly correlated. U.S. Commerce Department came with a drop of 19K to a total of 673K on May 23 and this week market participants are expecting a surge to 680K that might halt the gold rally.
Daily technical Forecast
On hourly scale, the formations of consecutive Runaway gaps after a Breakaway gap are not signaling any halt in the bull rally but pointing out for more upside once the precious metal will breach its strong resistance that is placed at 34,874 levels. RSI is trading at 62.29 levels showing no signs of overbought but a little divergence is taking placing. Stochastic oscillator is trading in an overbought position but showing no signs of any exhaustion in the current rally.