GOLD weekly forecast

U.S. policymakers have the chance this week to give clearer guidance on the future path of interest rates and settle markets that are uncertain over how and when a hike would occur. The Federal Reserve's Open Market Committee meets from Tuesday to Wednesday. The U.S. central bank is likely to announce a further $10 billion reduction of its monthly bond purchases, but markets will read its Wednesday statement closely for clues to when interest rates might start rising.

Technical view- April 28-May 02

Weekly over view-

The metal has been in a down trend from $1,390 levels, but on a weekly basis it has been in an uptrend. The RSI in the weekly charts speaking some more up steam left. Currently the metal is trading at $1,304 levels in Asia's trading session. As of now, it opened this week on a positive note. It is facing strong resistance at the 50 week SMA. Last week, it touched the 50-week SMA, but unable to close above that. As of now, it crosses the 50 week SMA, but it is unable to sustain above that. This week's key is at 50 week SMA at $1,305. Trades above this level, it will shoot up to $1,310.5, $1,324 and $1,330.0 levels. On the down side, it has weekly support at $1,300 (200SMA), below $1,300 it will drift all the way towards $1,295, $1,285, $1,280 and $1,277. We are completely in a bearish mode once the metal closes below the $1,277 levels on a weekly basis.

Weekly forecast-

We are recommending to go long only above $1,305.5 for targets at $1,310.5, $1,320, $1,324 and $1,330 levels. The bulls will take charge completely only above $1,330, until selling will take place on every rise. On the down side, the weekly support levels exist at $1,300, below this, $1,290 will act as another major support. In the daily chart, the RSI is giving an initial break out towards $1,319 and $1,324. Safe traders can enter longs only above $1,306.60 (April 16 high).

Intraday-

The metal is facing strong resistance at $1,306.60 (April 16 high). As we recommended last Thurday, buy and hold patiently, it paid the price exactly hit our targets $1,305. Today we expect the upside momentum is limited and the metal will go for some correction up to $1,300 and $1,293, cmp $1,305. If the metal sustains above $1,306.60, safe traders can again buy for $1,310, $1,311.60 as intraday targets or even $1,320. Sellers can enter short positions below $1,298 for targets $1,293, $1,291.7, $1,289.50 and $1,282 (break below $1,289.5, then only lower targets will come)

Intraday recommendations- cmp $1,305.

Risky traders, sell with sl $1,307.

Safe traders, buy above $1,306.60.

joseph.nz@mail2.instafxgroup.com