02 August Friday View

With data releases from U.S. coming better than expected for last couple of days, gold is tending to trade lower.

On Wednesday, ADP Non Farm Employment Change came out 200K, Advance GDP q/q 1.7 %, Interest Rate remained in between 0 % - 0.25 % as expected. Yesterday, GBP had Manufacturing PMI 54.6, Asset Purchase Facility remained unchanged at 375B so has Official Bank Rate at 0.50 % . Eur- the Minimum Bid Rate remained at 0.50 % as well, as expected. USD - Unemployment Claims came out 326K, ISM Manufacturing PMI 55.4 both better than expected.

Today, we have GBP - Construction PMI and USD- Non Farm Employment Change and Unemployment Rate.

Better economic data are indicating the economy is in the path of recovery. USD is getting stronger and US equity market is performing better as well.  All these are weighing on Gold and putting pressure which is being reflected in past days.

The H4 uptrend line is broken on 31^st July, Wednesday, the support we mentioned yesterday of 31550 (USD 1308.49) as well as even the 31325 (USD 1300) level is broken as of now. Break of the later level is considered as a may be trigger for further downfall towards 28437 (USD 1179.40) by many analysts. But before for now we may have a support at 30785 (USD 1276.77) which is not very far from where it is trading now.

Tonight's data release may create some more volatility and force for the movement.

Stay Safe :)