May 31, 2019, | SQUARED DIRECT – Gold prices reached 2 week-high above the 1290 level amid a sharp decline in the US yields and the US Dollar. The latest headlines regarding the Federal Reserve were not supportive of the greenback. The vice president of the Fed considers that downside risk could call for more accommodative policy and mentioned inflation data has come lower than expected.
Prices continued to rise this morning President Donald Trump said that Washington would impose a 5% tariff on Mexican goods. The tariff would become effective June 10, until that country stops immigrants from entering the US illegally. Adding to this, a Bloomberg report said China has halted purchases of American soybeans and is not expected to resume the buying due to the disagreement over trade.
Gold price technical analysis
Gold prices surged during yesterday’s and today’s early session reaching a 2 week high of $1293.45 per ounce. The upsurge came after the failure of settling below the $1277.18 support level in the previous sessions. The price is currently still marching up above the $1291.35 level with a bullish momentum. The yellow metal is getting closer to enter the overbought zone, but until then, we expect the price to reach the $1295.36 resistant level.
Support: 1291.35 / 1288.35
Resistance: 1295.36 / 1298.49
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