Gold Price Technical Analysis


According to the recent report of Mitsubishi, the rising US inflation could impact the gold-market participants. Gain more insights on the yellow metal with the 1 May Gold Price Technical Analysis.

1 May, OctaFX – Persistent US Dollar buying interest prompted some fresh selling around dollar-denominated commodities – like gold on Tuesday. Adding to this, a goodish pickup in the US Treasury bond yields, led by rising speculations over a faster Fed monetary policy tightening cycle, kept exerting downward pressure on the non-yielding yellow metal.

US ISM PMI to provide some impetus but the focus remains on FOMC and NFP

Meanwhile, easing geopolitical tensions in the Korean peninsula, coupled with improving risk-appetite did little to revive demand for traditional safe-haven assets and stall the precious metal’s fall to its lowest level since March 21.

The commodity, however, has been finding some decent support near the $1310 area and hence, it would be prudent to wait for a decisive break through the mentioned level before positioning for any additional near-term weakness.

Moving ahead, today’s release of the US ISM manufacturing PMI print for April would now be looked upon for some short-term trading impetus ahead of this week’s key event risks, including the highly anticipated FOMC decision and the keenly watched US NFP report.

1 May Gold Price Technical Analysis

Weakness below $1310 level is likely to accelerate the slide towards $1307-06 intermediate support en-route the very important 200-day SMA near the $1304 region and the $1300 round figure mark. On the upside, $1315-16 zone, followed by the $1321 region (100-day SMA) might continue to act as an immediate resistance, above which the recovery could get extended towards $1326-27 supply zone.

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