Gold continued with its struggled to register any meaningful recovery and remains within striking distance of YTD lows. Will the yellow metal plunge below current levels? Take a look at this 18 May Gold Price Technical Outlook.
18 May, GKFX – A continuous upsurge in the US Treasury bond yields supported the recent US Dollar upsurge and had been weighing on the non-yielding/dollar-denominated commodities – like gold in the recent past. Adding to this, signs of stability in global equity markets also did little to revive the precious metal’s safe-haven demand.
Consolidates in a range for the third straight session
The yellow metal lacked any firm directional bias and has been consolidating within a narrow trading range over the past two trading session, amid near-term oversold conditions. The commodity’s inability to attract any buying interest at lower levels clearly seems to suggest that the near-term bearish trajectory might still be far from over.
Moreover, this week’s bearish break below the very important 200-day SMA, a key indicator used for determining the overall long-term trend, further reinforces the bearish bias. Hence, any recovery attempts are likely to get sold into, with a follow-through weakness, led by some fresh technical selling, now looks a distinct possibility.
Nevertheless, the commodity remains on track for its fourth week of losses in the previous five and weekly close below $1300 mark for the first time since mid- December.
18 May Gold Price Technical Outlook
The $1285 area might continue to protect the immediate downside, which if broken is likely to accelerate the downfall towards $1279-78 intermediate support en-route the $1267-66 region. On the upside, immediate resistance is pegged near the $1293-95 region, above which a bout of short-covering could lift the commodity beyond $1300 handle towards retesting 200-DMA, currently near the $1307 region.
This article 18 May Gold Price Technical Outlook was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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