Gold futures finished a tad weaker in quiet, range-bound trade on Monday at the start of a shortened holiday week, as a unchanged dollar failed to boost the metal as a hedge against the falling U.S. currency. Bullions witnessed range-bound trades ahead of the U.S. Independence Day holiday on Friday. Canadian markets will also be shut on Wednesday for the Canada Day holiday.
Selling pressure in gold emerged after China said it would maintain a stable foreign exchange policy, quashing speculation that the country could diversify part of its reserves into gold. China, which holds vast reserves of U.S. currency and Treasuries, said at a meeting of central bankers in Basel, Switzerland, that it would not make any "sudden changes" to currency reserves.
Reflecting concern that gold may have lost some of its appeal to investors, the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings remained at 1,125.74 tonnes as of June 26, when it fell 0.5 percent. It is currently down 0.7 percent from a record volume of 1,134.03 tonnes, marked on June 1.
Weekly Outlook (DG. Aug.)
Supports are $917, 906 and 895 Resistances are 952, 964 and 972
Last day DGCX Gold Aug Traded in the range $943-$935 and closed at $ 939.50
TECHNICAL OUTLOOK (Intra-day)
GOLD (Aug) - Bullish above $ 939 bearish below $933 Courtesy: JRG Wealth Management Trade commodities or equities from across the globe. Join Now
