The price of gold rallied higher in the global market after the US dollar index slipped lower in the global market. The bullish rally in the gold market started after the US dollar index slipped from its 14-year record high prior to the closing of the year 2016. Most of the professional Aussie traders made a decent profit by executing long orders in the gold market to trade the live assets. Despite the bullish rally in the price of gold, the professional gold investors are cautiously trading the gold as the FED has projected three possible rate hike in the year 2017.Since the price of this precious yellow metal is measured in a dollar a slight variation in the U.S dollar index significantly affects the price of gold. Generally, a weaker dollar results in the bullish rally in the gold market. The recent performance of the US economy is not up to the market and the leading researchers are suggesting that the price of gold will rally Furthermore as there is no imminent possibility of strong US data release.
Gold edges up in the global market: The price of gold went up by 0.43 percent in the global market according to the Comex division of New York Mercantile Exchange and the leading investors are suggesting that the bullish rally will be capped in near future. Though the dollar still remains under the bearish pressure FED chairperson Janet Yellen has already pointed out that they will most likely hike their interest rate in the month of June. If the FED manages to hike their interest rate then we will see a decent bearish rally in the gold market. Technically speaking the price of gold has to overcome huge cluster of resistance to impose a strong bullish threat. According to the technical analysts, the upside momentum of gold is most likely to be capped by 1274.70 (daily resistance). In the upcoming week, we might see a retest of that critical resistance level and the professional traders will be looking to execute short orders with bearish price action confirmation signals.
Gold market overview: The price of gold is exhibiting nice bullish momentum in the global market and most of the expert Aussie traders in the CFD trading industry made a decent profit by entering long in the gold market. However, most of them have booked their profit in the market as the price is heading towards the critical resistance level on the daily chart. The Contract for June ended up with 0.26 percent higher and the precious yellow metal traded at $1256.40 per ounce. However, if the price drop from the current level we are most likely to find a strong support near $1247.60 and the aggressive buyers will be looking for bullish price action confirmation signal to execute long orders in the market. Though the price is showing bullish momentum at the current movement the bearish pressure has started to build up in the market after the positive data of the U.S Initial Jobless claim. On the contrary, the US dollar index also went up by 0.09 percent in the global market the traders are expecting a decent bounce in the US dollar index from 97.24 level.
Summary: Trading the financial instrument has become very tough in the recent days as no one is certain about the price movement of mighty green bucks due to political instability. However, most of the leading researchers in the global market are expecting a decent bullish rally in the US dollar index after the FED hike their interest rate on the basis of 25 points. An imminent rate hike will boost the US dollar index which will ultimately create a strong bearish pressure in the gold price.