Next week we are expecting steady movement in Gold. The metal is expected to trade between the range of $1236 to $1245. This week the precious metal fell near to 0.48% mainly on strengthening US economy.
During this week the US economic indicators have shown positive results. Core Retail Sales, Producer Price Index, Unemployment Claims and Philly Fed manufacturing Index beat the economists expectations.
The dollar index made the month high of 81.03 on 15th Jan against the basket of 10 major currencies on strengthening market condition and expectation of further stimulus cut in next Fed meet. Strong dollar will not only weaken precious metals but also affect other metals adversely. In next week we are expecting DXY to remain between the range of 80.87 to 81.03. Range bound movement in DXY may not volatile the gold prices.
Next week we are having only two major economic events from US those are Unemployment Claims and Existing Home Sales. We are expecting that number of people filing for unemployment claims may settle near to 330K and existing home sales may remain near to 4.92m which may not bring major change in DXY index.
Buyers and Sellers may also hold for the Fed move or any other clues regarding tapering before making big bets. Overall there are only few factors that can back dollar in next week and sideway Gold prices.