After an initial uptick to levels beyond the $1300 handle, Gold met with some fresh supply and turned lower for the third consecutive session. Is the bearish pressure over? Take a look at this 29 May Gold Price Technical Outlook.
29 May, GKFX – A fresh wave of US Dollar buying emerged since the last Asian session on Tuesday and was seen as a key factor exerting downward pressure on dollar-denominated commodities – like Gold.
Sliding US bond yields/risk-off mood helps limit further downside
However, global risk-aversion trade, led by political turmoil in Italy and reinforced by a sell-off in the European equity markets, underpinned the precious metal’s safe-haven demand.
This coupled with the ongoing slump in the US Treasury bond yields extended some additional support and helped limit further downside for the non-yielding yellow metal, at least for the time being.
Looking at the broader picture, last week’s rejection from the very important 200-day SMA hurdle and inability to move back above the $1300 handle clearly suggests that the near-term bearish pressure might still far from being over.
However, traders are likely to wait for this week’s important release of the keenly watched non-farm payrolls data for some fresh directional impetus.
29 May Gold Price Technical Outlook
Immediate support is pegged near the $1293-92 region, below which the commodity is likely to accelerate the fall towards $1287-85 horizontal support en-route $1282 level (may swing low). On the upside, any meaningful up-move beyond the $1300 handle is likely to confront resistance near $1304 horizontal zone and is closely followed by $1307-08 region (200-DMA).
This article 29 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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