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Gold Has a Strong Support Around $1917 levels | Neal Bhai

Gold Forecast: With the global central banks moving towards a higher interest rate environment, led by the US Fed, it’s not surprising to see the pressure on Gold prices.

The Fed chair has made it amply clear that 0.50% rate hike in May is no more of an expectation, but more of a certainty. The gold traders are worried that the stubborn inflation could force the Fed’s hand for more aggressive hike, post the 50 basis point hike in May. With the dollar index making a new high at 101.29 and the bonds yields rallying, it’s not surprising to see the lack of interest in a non-interest bearing asset like gold.

Technically, gold has a strong support around $1917 levels, if breached, we could witness additional pressure on prices.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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