Gold Price Fundamental Outlook


Gold continues to drop in cycles as market sentiment falters and recovers amidst geopolitical turmoil. The possible trade war lead-up is likely to cool off following this week’s round of tariff threats. What else does this 5 April Gold Price Fundamental Outlook discuss?

5 April, GKFX – Gold extended overnight sharp retracement slide from over 1-week tops and continued losing ground through the Asian session on Thursday.

A fresh wave of global risk-on mood, as depicted by a strong overnight recovery in the US equity markets and buoyant sentiment across Asian bourses, was seen as one of the key factors weighing heavily on the precious metal’s safe-haven appeal.

Easing US-China trade war fears dampen safe-haven demand

Adding to this, a modest US Dollar rebound, supported by easing US-China trade war fears, exerted some additional downward pressure on dollar-denominated commodities – like gold. Further collaborating to the downside was a goodish pickup in the US Treasury bond yields, which tends to drive flows away from the non-yielding yellow metal.

The commodity is now inching closer to the lower end of its weekly trading range and a follow-through weakness, amid fading safe-haven demand, now looks a distinct possibility. Later during the early NA session, the usual initial weekly jobless claims data from the US would be looked upon for some short-term trading opportunities.

5 April Gold Price Fundamental Outlook

As FXStreet’s own Falvio Tosti noted earlier,

“key support is seen at $1,321 last week’s low. Bears will need to break the $1,330 level with the 50 and 100-period simple moving average. Unless the bulls can retake the $1,400 level the short-term momentum is currently seen as bearish. 

Resistance is seen at the $1,340 psychological level and at $1,348.40 swing high, while support is seen at $1,328.60 swing low and confluence zone, followed by $1,321.06 swing low.”

Disclaimer

This article 5 April Gold Price Fundamental 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.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

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