Gold seesawed between tepid gains/minor losses through the early European session and was seen consolidating overnight strong gains to over one-week tops. What next can traders expect? Gain insight into this 25 May Gold Price Technical Outlook.
25 May, OctaFX – The US President Donald Trump’s announcement to call off a planned summit in Singapore with North Korean leader Kim Jong-Un triggered a wave of global risk-aversion trade on Thursday and boosted the precious metal’s safe-haven demand.
Gold consolidates overnight strong gains, capped below 200-DMA
Adding to this, a modest US Dollar profit-taking provided an additional boost to the dollar-denominated commodity and further collaborated to overnight strong up-move, back closer to the very important 200-day SMA.
However, North Korea’s’ measured response, showing the willingness to resolve issues with the US calmed investors’ nerves. This combined with reviving USD demand, supported by a modest uptick in the US Treasury bond yields further contributed towards keeping a lid on any follow-through up-move for the non-yielding yellow metal.
Moving ahead, today’s release of the US durable goods orders data and a scheduled speech by the Fed Chair Jerome Powell would now be looked upon for some fresh impetus on the last trading day of the week.
25 May Gold Price Technical Outlook
Bulls will be eyeing for a clear breakthrough the 200-day SMA hurdle, currently near the $1307 region, above which the metal could head towards testing $1314 intermediate resistance en-route $1321-22 supply zone.
On the flip side, the $1300 handle now seems to have emerged as an immediate support, which if broken might prompt some fresh selling and drag the commodity back towards $1293-92 horizontal support area.
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