March 5, 2019 | SQUARED DIRECT – Gold price continues to face pressure on Tuesday morning as news on Monday shows that a potential trade deal between the US and China could happen soon. This development helped lift stock markets but put downward pressure on safe-haven assets like the yellow metal.
On the other hand, the greenback is still on the rise even with mixed economic data and it looks like it will most likely go higher. However, the one positive news for the precious metal is the release of an updated forecast for gold prices by Goldman Sachs.
The investment bank now expects gold to reach $1,350 within three months, up from a previous forecast of $1,325. In six months, the bank forecasts gold at $1,400 per ounce.
Gold price technical analysis
Gold prices continued to face bearish pressure during Monday's session as they retreated towards the $1,282 territory as expected before quickly bouncing back up above the $1,286 level.
The price is currently on its way back to retest the lows and looks set to make another run to the downside. We will be focusing on the $1277.1 support level.
Support: 1282.19 / 1277.18
Resistance: 1291.83 / 1293.78
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