Gold price extended its steady decline from intraday highs, around the $1330 area, and is currently placed at the lower end of its daily trading range.
February 26, GKFX – Having failed to capitalize on Friday's attempted bounce, the precious metal traded with a mild negative bias and has now moved within striking distance of last week's swing low.
The commodity did get a minor lift during the Asian session on Tuesday amid reviving safe-haven demand in wake of rising geopolitical tensions in the Asian continent, albeit lacked any strong follow-through.
The latest optimism over the US-China trade negotiations, especially after the US President Donald Trump said that he will extend a deadline to escalate tariffs on Chinese imports, kept a lid on any further up-move.
Meanwhile, bulls seemed rather unimpressed by a subdued US Dollar price action, which tends to underpin demand for the dollar-denominated commodity, rather preferred to wait on the sidelines ahead of today's key event risk.
The Fed Chair Jerome Powell's two-day testimony to Congress will be closely scrutinized for the central bank's view on monetary policy and might provide a fresh directional impetus for the non-yielding yellow metal.
This coupled with a slew of important macro data, including Chinese PMI prints and the revised US Q4 GDP growth figures, will further contribute towards determining the commodity's near-term trajectory.
Gold price technical forecast
Immediate support is pegged near the $1321 area, below which the metal is likely to accelerate the slide towards the $1315-14 region en-route the next major support near the $1305 horizontal zone. On the flip side, the $1331-33 region now seems to have emerged as an immediate hurdle, which if cleared might lift the commodity back towards $1340 supply zone.
This article, Gold price technical forecast was provided 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.