On Friday, the precious metal GOLD prices bounced off from a sharp decline in the previous session, while traders await the US economic growth data due later in the day. The US GDP figures could provide clues about the Federal Reserve’s monetary policy meeting.

The investors are now eyeing the US central bank’s July 30-31 monetary policy meeting, when the back is expected to cut its interest rate by at least 25 basis points.

Recalling FX Leaders morning brief, the US advance GDP is expected at 12:30 GMT and it’s expected to plunge from 3.1% to 1.8%, which is dramatically lower than in previous years. The GDP has never performed that poor since April 2017. So, the actual figure falling to 1.8% gives the Federal Reserve a solid reason to consider rate cuts this year.

The U.S. dollar can face a sharp dip on the release of a less than forecast 1.8%. Therefore, the negative correlation between gold and the US dollar can also bring bullish waves in gold today.

Speaking about the technical indicators, gold is trading bullish after gaining the support of around $1,411. Yesterday, the precious metal violated the descending triangle pattern at $1,420 and now the same level is likely to extend resistance to gold.

Support Resistance
1419.58 1430.79
1413.38 1435.81
1402.17 1447.02
Key Trading Level: 1424.6

Gold – XAU/USD – Trade Idea

I will be looking to add a sell position below $1,420 with a stop loss above $1,425 and take profit of $1,410 and $1,405 upon the release of positive GDP data.

Good luck!