After an initial downtick to sub-$1290 level, Gold caught some fresh bids and jumped to over one-week tops in the last hour. What next can traders expect? Gain insight into this 23 May Gold Price Technical Forecast.
23 May, GKFX – Investors rushed to buy traditional safe-haven assets on Wednesday after the US President Donald Trump tempered optimism over the progress made in the recent US-China trade talks.
Global risk-aversion trade benefits traditional safe-haven assets
This coupled with resurfacing geopolitical tension amid doubt over the upcoming historic US-North Korea summit in June spoofed global financial markets and helped revive the precious metal’s safe-haven demand.
The global risk-off mood was further evident from a sharp fall in the US Treasury bond yields, which provided an additional boost to the non-yielding yellow-metal and remained supportive of the uptick.
Meanwhile, resurgent US Dollar demand was seen as the only factor keeping a lid on any strong up-move for dollar-denominated commodities – like Gold, with bulls now seemed struggling to make it through the $1300 handle.
Moving ahead, today’s release of the latest FOMC meeting minutes, due later during the NY trading session, might influence Fed rate hike expectations and provide some meaningful momentum that could assist the commodity to decisively breakthrough a multi-day trading range.
23 May Gold Price Technical Forecast
A follow-through momentum beyond the $1300 level is likely to get extended and lift the metal back towards retesting the very important 200-day SMA barrier near the $1307 region.
On the flip side, retracement back below $1293 level might drag the commodity back towards $1288-86 support area, which if broken would turn it vulnerable to resume with the prior downward trajectory.
This article 23 May Gold Price Technical Forecast 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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