Gold price analysis – XAUUSD climbs to $1550 post-US GDP


Gold price quickly reversed a mid-European session dip to the $1534 region and moved back into the positive territory post-US GDP, albeit lacked any strong follow-through.
 
29 August 2019, OctaFX – Spot failed to capitalize on the early uptick to the $1550 area and witnessed some pullback in reaction to positive trade-related comments the Chinese Commerce Ministry spokesman, which triggered a fresh wave of global risk-on trade and dented Gold’s perceived safe-haven status.

Gold price fundamental highlights

Improving global risk sentiment was further reinforced by a solid intraday up-move in the US Treasury bond yields, which further collaborated towards driving flows away from the non-yielding Gold and collaborated to the intraday slide, albeit a subdued US Dollar helped limit the downfall.
 
Meanwhile, Thursday’s mostly inline release of the US GDP report, showing that the economy expanded at an annualized pace of 2.0% during the second quarter of 2019, did little to impress the USD bulls and seemed to be the only factor behind Gold’s latest leg of a sudden pick up in the last hour or so.

Gold price technical analysis 

From a technical perspective, bearish RSI divergence on daily charts now seemed to suggest that Gold might have already topped out in the near-term, which might prompt some aggressive long-unwinding trade and thus, warrant some cautions before initiating any aggressive bullish bets.

Disclaimer

This article was provided by OctaFX. It should NOT 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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