trendprofiles

Gold Futures in USD:

The friday jobs reports reaction has been taken as positive dollar and weak gold and this is another instance of the  markets trying
to speculate on a day to basis and react to each economic data release. While the jobs data recently released just says that the unemployment rate
reduced a bit to 4.2% from the prior month of 4.3%.The technical resistances as seen on the charts show up a possibility of buying to be
challemged closer to $2585 levels which - if broken out with a high vigor and volumes may induce a fresh bout of uptrend.

Momentum diverging:

The 14-Day RSI - a monentum indicator shows there is a slight divergence to the historical high of prices which again points to short term
pause in the uptrned and may see gold retreat a bit. The converging lines of support and resistance rather shows there could be some more
days of mutued interest while the underlying uptrned remains potently high.

Gold still a favourate destination

Within the investment complex , the stocks , select agri commodities and Gold are the only few which continue to garner investor confidence for the fact that the declines are taken with respect and hence the possibility of gold to stay sidelines could be limited.

Indian Gold - Inching higher:

As the global gold makes its appeal internationally , gold in India see not respite and the levels of INR 67k ish /10 gm looks an old story.
The dollar rupee is also on the rise which makes the gold in INR all that supportive above 70K / 10 gm.  In short term enen though the
declines are possible globally the same may not be seen with the same degree in INR, addig to this the gold loan companies are finding
in an extremely good spot to increase their lending.

View of dollar

The dollar is caught up in plenty of geopolitical and decisions of FED , has seen it land closer to 100 after a long time. The fed tragectory so far has been "to decrease the interest rates , not to begin the rate cycle decline". Probably this difference is a big take away for the rest of the year , as we have plentay of reasons to believe that sep'24 rates may decline  , but this may have already factored in the dollar arrround 101-100 levels. But that said the down side may not be that strong but some where the dollar could see a bounce back , if the inflations shows signs of a nasty comeback.

Disclaimer:Views expressed in the article is based on authors personal opinion and does not advocate a buying or selling opportunity. Trendprofiles consulting services assumes investors are well aware of the risks involved in participating a financial asset and are advised to act at their own judgement.