Gold, which lost around $70 last week, managed to recover after the US Fed stated that inflation might be there till the year-end and participants are expecting that due to high inflation, the Fed wont have room on the upside once it starts increasing rates.
Despite $73 oil, US shale producers are not expected to significantly raise crude production this year as they continue to be focused on disciplined capital expenditures and returning more cash to investors.
But there is positive factor as there is tropical storms in the Gulf of Mexico, so that could provide a little bit of a short-term boost regardless.
Looking at this scenario, we would recommend going long only above 47,300 for expected move till 48,000 and stoploss of 46,850 on a closing basis.
RSI_14 is showing loss of momentum as it is struggling to sustain above the 50 levels, so we would recommend going short below 190 levels for expected down side move till 184 and stoploss of 195.
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