GOLD RISES AFTER UPSWING IN CHINESE YUAN
Gold started the week on a positive note and inched up to $1184.82 at the time of writing. Gold ended the previous week on a positive footing after touching a 1.5 years nearly low on Wednesday.
Gold prices rose on Monday as a strengthening Chinese Yuan made the precious metal cheaper for buyers in the world’s biggest gold consuming nation.
Gold prices rose after news of U.S.-China trade talks planned for this week helped lift the yuan from its weakest in 19 months.
Spot gold was up 0.18 percent at $1,186.43 an ounce after Thursday’s dip to $1,159.96, the lowest since January 2017.
Holdings of gold backed exchange traded funds, have fallen by 7%, since late May as investors exited positions.
Markets were looking ahead to Friday and a speech by U.S. Federal Reserve Chairman Jerome Powell at a conference in Jackson Hole in which he might give clues about the pace of U.S. interest rate rises. Any display of caution about rate rises could push the dollar lower and give gold a leg up.
On the technical front, the RSI is currently at 32.7% and suggests that the market can continue trading sideways. %K has crossed %D from below to upside at 11% and suggests that market may head upwards. The price is above the MA5 .So, overall the market setup seems to be mixed to positive.
Trade Suggestion-Limit BUY At: 1181, Take Profit At: 1185 Stop Loss At:1179