Gold continued to slide further down for the third consecutive week. US Treasury yield continued to spike up due to stronger than expected non-farm employment change and Fed’s dovish comments about rising inflation, which put pressure on Gold prices further.
Technically, the short term outlook looks bearish for Gold. First major support is around $1649 which is 78.6% retracement level and also weekly 100 SMA at the same level. While on the higher side, $1772 will act as the first major resistance and above that next resistance will be at 161.8% retracement level at $1872. Fundamentally, the market will react to upcoming US CPA data on Wednesday March 10.
Rising jobs data and growth, Dollar Index climbed to the much awaited level of $92 in the last week. The USA is pushing to get more stimulus packages, it's getting closer to approving a $1.9 trillion package. All this is helping the US dollar index to strengthen. For the coming week, 91.50 will provide support while as long as it holds 92 level Dollar will remain strong and might march towards 93.80-94 level which is the next 38.2 retracement level. Strengthening Oil and Dollar index suggests prospects for real economic growth.
Bitcoin rose over 4% on Sunday and more than 12% for the past week. It hit above $51800 and reversed back to below $49800 by early today (8th March). On a 4 hour chart, $52000 is the first range resistance for the Bitcoin while on the downside $48700 will provide some support for the day. In the event of extended bullish rally, above $52000 next major resistance is at $54160 that is 0.148 retracement level. Key support levels are $48000 followed by $47200 and $46180. Close above $50,000 is important for the bulls to keep continuing the previous week’s momentum.
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