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Gold price forecast - Will the uptrend continue above $1274?

Gold price forecast - Will the uptrend continue above $1274?

May 2, GKFX – With the global traders cheering upbeat comments from the Fed’s Powell, Gold prices trade near $1,274 ahead of the European session on Thursday.

Gold price fundamental highlights

Yesterday, the US Federal Reserve Chairman Jerome Powell turned the market sentiment in favor of the greenback as sound upbeat on economic growth and give little importance to recent noise in inflation data.

The bullion remained on a back-foot since the early-day as holidays at China and Japan offered less news to change the momentum while positive developments at Brexit and the US-China trade front also favored market’s risk-on mood.

Global risk barometer, 10-year Treasury yield from the US, remains mostly unchanged at 2.50%. Traders also gave less importance to the World Gold Council (WGC) forecast signaling an increase in Indian gold consumption during the June quarter.

While there seems no major data from the US ahead of tomorrow’s headline monthly employment report, quarterly unit labor costs and nonfarm productivity for Q4 2018 can give an early indication of Friday’s data.

The nonfarm productivity is likely to increase by 2.2% from 1.9% prior whereas unit labor costs may soften to 1.5% from 2.0% previous readout. Adding to the news flow could be headlines from the UK central bank (Bank of England) that is up for releasing its quarterly inflation report (QIR).

Gold price technical forecast

Having failed to clear $1287/88 resistance area, gold prices may revisit $1267/66 support-zone comprising an upward sloping trend-line stretched since August 2018 together with July 2018 highs and 2019 April lows. On the break of $1266, 200-day simple moving average (SMA) near $1252 may gain market attention.

Meanwhile, an upside clearance of $1288 can give rise to the quote’s uptick towards 100-day SMA level of $1293 and $1298 resistance-confluence including 50-day SMA and nine-week-old descending trend-line. Should there be additional increase beyond $1298, $1305 and $1311 may lure buyers.

Disclaimer

This article 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.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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