MCX Gold had a positive opening stance in previous week as the fundamental development due to lower Non-farm payrolls last week, decline in Manufacturing Purchasing Managers Index to 52.1 from 52.8 in April as they both act as a catalyst for Federal Reserve’s decision and formation of Rounded Bottom on daily chart thrust the yellow metal to a high of 33,356 levels but flat numbers from Core Retail sales data, which were in line with estimates reported on Friday halted the precious metal’s rally and sellers got activated after the counter slipped below 33,200 levels and MACD gave a bearish crossover on hourly chart.
U.S. government will disclose New York Empire state Manufacturing Index that rates the relative level of business conditions in the state of New York, which is compiled from a survey of 200 manufacturers today that might impact the precious metal prices as it act as a catalyst to guide for the Federal rate. U.S. government reported an addition in the improving conditions to 17.80 in May while this month the economists’ poll is expecting a fall to 11 levels that could thrust the gold prices to higher levels.
Daily Technical Forecast
On hourly scale, MCX Gold has formed a ‘Reciprocal AB=CD’ harmonic pattern, that possess high reliability and signals for the continuation bullish trend after some long liquidations. The precious metal is trading near the kissing distance of its 50 hours Exponential Moving Average. A breakout above 33050 levels could thrust the yellow metal to 33,200 levels. RSI is trading at 40.69 levels while Stochastic oscillator is on the verge of giving a bullish crossover.