May 24, 2019, | SQUARED DIRECT - Gold price built on its intraday positive move and spiked to fresh weekly tops, around the $1287 region in the late US session, albeit retreated a bit thereafter. With investors looking past Wednesday's release of the latest FOMC meeting minutes, which reaffirmed the central bank's patience stance on interest rates, deteriorating global risk sentiment boosted demand for traditional safe-haven status and helped the precious metal to catch some fresh bids.
The recent escalation in the US-China trade tensions continued weighing on investors’ appetite for perceived riskier assets and the same was evident from a fresh round of selloff across equity markets. This coupled with a sharp intraday slump in the US Treasury bond yields further benefitted the non-yielding yellow metal.
Gold price technical forecast
As expected, Gold prices surged amid a divergence between the momentum and the price as presented on the chart and climbed to the $1287 area before retreating back a little bit by $4. The price is currently trading just above the $1283 level but the bullish momentum has still more room to go, so a simple consolidation could provide the necessary traction for the bulls to take over again. Our focus will be on the upside especially the $12885.35 resistance level.
Support: 1282.19 / 1280.11
Resistance: 1285.35 / 1288.35
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