Gold price analysis – XAUUSD targets $1291

May 17, 2019, | SQUARED DIRECT – Gold dropped on Thursday with the prevalent risk-on atmosphere making it difficult for the precious metal to find demand as a safe-haven. The lack of fresh headlines surrounding the US-China trade conflict and some upbeat earnings figures from large US corporations, such as retail giant Walmart, provided a boost to the market sentiment yesterday.

The CBOE volatility index, Wall Street’s fear gauge, dropped to its lowest level since early May to confirm the stronger risk-appetite. Furthermore, after slumping to its lowest level since late March, the 10-year US T-bond yield gained traction and was last seen adding more than 1% on the day. Supported by the upsurge in bond yields, the US Dollar index staged a decisive rebound and touched its highest level in two weeks, allowing the bearish pressure to remain intact.

Gold price technical analysis

Gold prices failed to keep the traction going and headed lower losing 0.9% of its value breaking below the $1290 level. The price received support from the previous trend line presented on the chart and is now trading just below the $1288.35 resistance level. The next level we will be watching is the $1291.35 resistance level if bulls want to prevent losing control.

Gold price analysis

Support: 1295.36 / 1291.35
Resistance: 1298.49 / 1300.91


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