Gold price extended its sideways consolidative price action on Friday and remained confined well within a narrow trading band near multi-year tops, around the key $1500 psychological mark.
9 August 2019 | SQUARED DIRECT – The price of gold was modestly off multi-year highs during yesterday’s session, as they traded slightly below the $1500 area before getting back up this morning. The improvement in risk sentiment has not created a profit-taking correction in gold as the Dow Jones gains 1%.
US President Trump said he is not thrilled with the “very strong dollar” and criticized again the Federal Reserve. His comments triggered some moves in the currency market. On another note, the recent escalation in the US-China trade tensions, growing pessimism over the global economic growth outlook will continue to provide a strong boost to traditional safe-haven assets as it’s one of the key factors behind the precious metal’s strong rally.
Gold price technical forecast
Gold price migrated lower slightly from the multi-year top during yesterday’s session after hitting a deep zone in the overbought territory but kept hovering around the $1500 level. The price is currently back to challenge recent highs but facing resistance by the $1506 level.
Another break to the upside looks more probable for the yellow metal especially with this strong bullish momentum but traders must keep eyes on the divergence between the price and the momentum. The next level to watch will be the $1520.64 resistance level.
Support: 1456.93 / 1441.79
Resistance: 1474.99 / 1482.82
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