Gold hits $3,400, momentum heats up, $3,420-$3,450 on bulls radar
- Gold Reclaims $3400 psychological mark.
- Dollar Index drops to 98.10
- Markets cautious ahead of Initial Jobless Claims data release.
- Immediate hurdle is $3403 followed by $3410-$3420
- Immediate support $3392-$3386 crucial for Bullish momentum.
Fundamental drivers
Gold bullish momentum is getting strong boost by Fed rate cut expectations in September meeting and PCE data ahead which works as important inflation gauge. Also, upcoming Initial Jobless Claims release is awaited which may significantly influence Dollar and Gold prices.
Rising political tensions from concerns on Fed's autonomy and independence threatened by Trump's strong actions and face off keeps Dollar under pressure and boosting Gold demand for safe haven.
Technical drivers
Gold remains undisputed favourite bet for buying the dips and retracement towards $3384 attracted buyers again, reclaiming the psychological mark of $3400.
Bulls need to clear through immediate hurdle $3403 to extend advance towards $3410-$3420 above which next upside targets are positioned at $3438 followed by $3450-$3465.
Major upmove will target a new All Time High around $3545-$3568.
On the flip side, a strong break below $3350 will invalidate the immediate bullish momentum calling for drop to ascending trendline support $3330 before any new attempt to rise.
Author
Sunil Kumar Dixit
SK Charting
Sunil Kumar Dixit is Chief Technical Strategist and founder of SK Charting, a research firm based in India. He tracks Precious Metals, Energy, Indices and Currency Pairs. He also participates as an expert panellist on Channel Television, Nigeria.
