Gold Bounces-off Above $1,880 – Weaker US GDP Underpins Metal
The gold price is struggling to maintain its recovery from over two-month lows of $1,972, as sellers remain active above the $1,900 level
The gold price is struggling to maintain its recovery from over two-month lows of $1,972, as sellers remain active above the $1,900 level. The drop in GOLD prices follows a modest rebound in the US dollar across its major peers, as market sentiment turns cautious amid concerns about the outlook for tech stocks, following disappointing results from Amazon and Apple Inc. late Thursday.
Meanwhile, concerns about a drop in US Q1 GDP keep investors on edge, supporting the greenback’s safe-haven demand. Uncertainty about the Russia-Ukraine crisis and China’s economic resurgence, and its impact on global growth will likely prompt traders to seek refuge in the US dollar.
Given the off in Japan, inactive bond yields triggered the DXY’s pullback. The cautious mood ahead of the Fed’s preferred inflation gauge, the US Core Personal Consumption Expenditures Price Index, is similar. Forecasts suggest that the US Core PCE inflation data will ease to 5.3 percent YoY from 5.4 percent previously, which may add to the US dollar’s pullback moves if it eases more than expected.
In addition to the US PCE Price Index, the US Michigan Consumer Sentiment Index and the Chicago PMI will be risk catalysts directing short-term gold price movements.
Gold Technical Outlook
The gold price ended yesterday above 1890.00, indicating that it is attempting to recover on an intraday basis, with the expectation of testing the intraday bearish channel’s resistance before bouncing bearishly to resume the primary bearish trend, which is clearly supported by stochastic loss to the positive momentum.
As a result, the overall bearish trend will continue unless the price rises and holds above 1905.00, reminding you that our next main target is 1850.00. Today’s trading range is expected to be between 1870.00 support and 1910.00 resistance.
Today’s predicted trend: Bearish
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals