Gold edged up on Wednesday and is currently placed near the $1310 region, recovering a part of previous session's slump to fresh yearly lows. What contributed to the recovery? This and more are highlighted in this 2 May Gold Price Trading Outlook.
2 May, OctaFX – On Tuesday, a stronger follow-through US Dollar buying interest kept exerting downward pressure and dragged the dollar-denominated commodity to its lowest level since Dec. 29. The downfall abated just ahead of the key $1300 round figure mark, with a subdued USD price action helping the commodity to stage a minor recovery.
Traders seemed inclined to lighten bets ahead of FOMC
Today's modest uptick could also be attributed to some short-covering from the very important 200-day SMA and ahead of today's key event risk - the highly anticipated FOMC decision.
The Fed is widely expected to leave interest rates on hold but investors would be looking for clues about the future tightening path, which would eventually help determine the next leg of directional move for the non-yielding yellow metal.
In the meantime, the US private sector employment details - ADP report, would be looked upon for some short-term trading opportunities later during the early NA session.
2 May Gold Price Trading Outlook
Any subsequent recovery move is likely to confront resistance near $1316 horizontal zone, above which a fresh bout of short-covering could lift the commodity further towards $1323-25 supply zone. On the flip side, the $1303-01 region (200-DMA) might continue act as an immediate support, which if broken seems to continue dragging the metal further towards its next support near $1393 level.
This article about 2 May Gold Price Trading Outlook was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.
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