Technical Outlook For Gold, Silver & US Dollar Index: 06.07.2018

GOLD

Gold prices are trading in a range between the $1251 and the $1260.50-$1261 ahead of the crucial US NFP data with brighter favoring the yellow metal’s dip to $1246-$1245.50 in case if stronger jobs report drag the quote beneath $1251. Should the Bullion refrain to respect the $1245.50 rest-point, the $1242.90-80 and the $1237.90 could offer intermediate halts during its plunge towards 61.8% FE level of $1232.20. On the contrary, disappointment from the employment report could quickly fuel the Gold in direction to $1261, breaking which $1266.50 and the $1271.50-$1272 can please the buyers. Additionally, metal’s successful journey beyond $1272 may highlight the $1278 and the $1282 numbers on the chart.

SILVER

Alike Gold, the Silver is also trading sideways within the $15.90 and the $16.10-15 but the white-metal is weaker than the former because of its industrial use which is quite in danger due to the present trade-tussles amid US & China. Hence, strong US employment figures can do more harm to the bullion by fetching it to $15.75 once $15.90 breaks. Given the prices drop below $15.75, the 61.8% FE level of $15.60 seems crucial for Bears as break of which might push them to aim for $15.40, $15.15 and the $15.00 supports. Alternatively, upside clearance of $16.15 may have another barrier, in the form of descending trend-line, at $16.20 that it needs to surpass in order to target $16.30 and the $16.50 resistance-level. If the Bulls continue ruling trade-sentiment above $16.50, the $16.60, the $16.80 and the $17.00 can appear in their radars.

US Dollar Index [I.USDX]

With its recent pullback from 95.55, the US Dollar Index (I.USDX) is presently testing two-month old ascending trend-line support of 94.25 before US jobs report. Should the headline figures disappoint greenback optimists, the USD gauge may dip below 94.25 and can visit the 50-day SMA level of 93.90. Assuming further pessimism for the U.S. stretching the gauge’s south-run below 93.90, the 93.50 and the 93.15 can receive market-watchers’ attention. Meanwhile, a daily close above 94.50 can trigger the index’s upside to the 95.10 and the 95.55. Let’s say the indicator conquers the 95.55, then it becomes capable of meeting the 95.90, comprising 61.8% FE, followed by the 96.10 resistance-levels.