Comex Gold trading near to 3 months low, a pause after recent sell off. All eye on today's evening data and event
Gold trade neat to 3 months low after recent fall as investors continued to assess the prospects of a rate hike as early as this month by the Federal Reserve. Overnight, gold continued its steady decline on Wednesday, remaining near three-month lows, as stronger than expected manufacturing data in the U.S. potentially increased the likelihood that the Federal Reserve will raise interest rates when it meets next later this month. Any rate hikes by the Fed this year are viewed as bearish for gold which struggles to compete with high-yield bearing assets in rising rate environments.
Today traders must have a close watch on today's data and event;
ADP non farm employment change, Unemployment claim, ECB press conference, Natural gas and Crude oil Inventory.
Gold has support at 28850 and resistance at 29150---29240. Break and sustain + close below 28850 will take to 28700---28600 mark else it could test its resistance level of 29150---29240 again. More and more upside rally will see only close above 29240 mark.
Today in evening session... we will expect high volatility in the market due to upcoming data and event. So traders can trade safely with levels only
