GOLD SETTLE $ 1588 LOWER $ 46.20
The evening gold session reacted positively to news that China PBOC (the Peoples Bank of China) had cut rates for the first time since 2008. Hong Kong based economists are predicting that there will be at least one more rate cut before year end. There is also wide speculation that the Chinese government will respond with a 2 trillion Yuan stimulus package to help jump start China’s sluggish economy. This helped Gold to stay above the $1620.00 until Mr. Bernanke began speaking at 1930 hrs. It was widely thought that Mr. Bernanke would be more decisive with his comments regarding the U.S economy.
However, Mr. Bernanke was very non committal and stated “FOMC has made no decision on more Quantitative Easing’ and added “the option would not be taken off the table. With Bernanke speaking we can most likely expect more of the same easing rhetoric, though it would be a surprise to hear any specific call to action and cause a sell-off. However, yesterday’s sell-off was certainly another avalanche due to sketchy and unclear comments.
The FOMC will hold their next meeting on June 19th – 20th. Many of the FOMC members have prompted more support for stimulus in the recent days so we will have to wait twelve days for their decision.
WATCH LEVEL : IF $ 1580 HOLD FOR THE DAY IT WILL RE-ACT MAJOR SUPPORT FOR JUNE
TODAY LEVEL
RESISTANCE # 2………….$1650.00
RESISTANCE # 1………….$1619.00
PIVOT…………………..… $1599.00
SUPPORT # 1……………...$1568.00
SUPPORT # 2……………...$1548.00
MCX
RESISTANCE # 2………….INR 30100
RESISTANCE # 1………….INR 29860
PIVOT………………..…… INR 29520
SUPPORT # 1……………...INR 29080
SUPPORT # 2……………...INR 28700
Happy Trading
Rahul Kumar
Gold Analysist
Call me : 969-0022-884
The evening gold session reacted positively to news that China PBOC (the Peoples Bank of China) had cut rates for the first time since 2008. Hong Kong based economists are predicting that there will be at least one more rate cut before year end. There is also wide speculation that the Chinese government will respond with a 2 trillion Yuan stimulus package to help jump start China’s sluggish economy. This helped Gold to stay above the $1620.00 until Mr. Bernanke began speaking at 1930 hrs. It was widely thought that Mr. Bernanke would be more decisive with his comments regarding the U.S economy.
However, Mr. Bernanke was very non committal and stated “FOMC has made no decision on more Quantitative Easing’ and added “the option would not be taken off the table. With Bernanke speaking we can most likely expect more of the same easing rhetoric, though it would be a surprise to hear any specific call to action and cause a sell-off. However, yesterday’s sell-off was certainly another avalanche due to sketchy and unclear comments.
The FOMC will hold their next meeting on June 19th – 20th. Many of the FOMC members have prompted more support for stimulus in the recent days so we will have to wait twelve days for their decision.
WATCH LEVEL : IF $ 1580 HOLD FOR THE DAY IT WILL RE-ACT MAJOR SUPPORT FOR JUNE
TODAY LEVEL
RESISTANCE # 2………….$1650.00
RESISTANCE # 1………….$1619.00
PIVOT…………………..… $1599.00
SUPPORT # 1……………...$1568.00
SUPPORT # 2……………...$1548.00
MCX
RESISTANCE # 2………….INR 30100
RESISTANCE # 1………….INR 29860
PIVOT………………..…… INR 29520
SUPPORT # 1……………...INR 29080
SUPPORT # 2……………...INR 28700
Happy Trading
Rahul Kumar
Gold Analysist
Call me : 969-0022-884
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