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Gold is “Dim” now

Gold prices posted another low of $1180 during Asian session on Friday. Bearish pattern continuously suppressed the prices of yellow metal as we observed back to back new lows in June 2013. But in US session on Friday gold rebound and closed at $1234. From the peak of $1488 and $1423, a huge downward wave came and 3 years low tested. Rebound from $1180 has now reached up to 23.6% retracement level. $1230-$1245 area is still resistance but if precious metal crosses this successfully, 38.2% retracement levels may in play i.e. $1261.

Almost 36% down from all time high $1920, yellow metal is losing its shine as it’s unable to gain safe haven status till now.  Investors are looking new horizons to make money and ignoring typical safe-haven investment.

Overall trend is down, but some analysts are expecting a rally towards $1321-$1326 that is still a major resistance. Definitely on contract expiration, we were expecting an upward rally but don’t forget gold is bearish and another down trend can show $1100. Some buyers are also ahead as news is circulating in the market about buying from China and India but both countries are facing serious economic issues. For now, I didn’t see heavy demand which could spark yellow metal and holding of precious metal will not beneficial for investor.

Gold is in trouble, now we are entering in July. Quarterly and half yearly closing around $1234 is providing the signal that no needs to be wishful regarding bullishness of gold.

Waseem Ahmad   

About Waseem Ahmad

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