Fundamentals for the Day
No major fundamentals from US
International Gold trader started strange sell off in GOLD-SILVER because of which precious metals remain under pressure and extending correction in 3rd week consecutively. It can fall further if Fed delivers another rate hike signal more tightening is coming – Silver will get more volatile.
What is strange part? for this Sell off
Middle East situation continue to become worse, Oil price move above 100$+ per barrel Inflation remain stubbornly high & investors are becoming nervous about both stocks & bonds – above reasons are good enough to Buy Gold. instead of that Gold-Silver traders are currently focused on the Fed. Higher Interest rate expectations are hurting and making life difficult for gold & silver mainly in short run.
China Central Bank added 6,50,000 Ounce of Gold by August biggest monthly purchase in last 3 years. Short term traders are selling gold cause of worried about Kevin Warsh may it.
The Fed can move interest rate around but it can not make those problem disappears of rising oil prices, consistent inflation – enormous government debt-continuing central bank gold purchase all of it has not gone away.
XAUUSD – Gold
Range: 4380$ – 4170$
Our Preference: Sell Gold @ 4380$ with SL 4400$+ target 4282$
Alternative Scenario: Buy Gold @ 4215$ with SL 4200$ target 4282$
Trading Zone
4321$ Sell start for momentum @ 1st stroke SL 10$
4282$ Buy @ 1st stroke with SL 10$
4215$ Last Buy for the Day
Positional Buy Gold @ 4168$ for target 4326$ & 4432$ on Holding basis with SL 4140$
Above trades are only for day trading – Positional trade will remain only on Buy side – so if you have a Buy position we prefer to Hold it only.
XAGUSD – Silver
Range: 64.14$ -59.68$
Our Preference: Sell Silver @ 64.14$ for target 62.40$ & add more sell below 62$ for target 60$ with SL 64.70$
Alternative Scenario: Buy Silver @ 60$ with back up Buy 59.66$ for target 65.60$ SL 59.20$ below only if sustain
Trading Zone
63.50$ sell starts for the Day
62.40$ Buy @ 1st stroke
62$ Sell breakout
60$ Lat Buy for the Day
