July 29, 2019 | SQUARED DIRECT - Gold price edged higher during Friday’s session but still trading in a tight range below the $1422.59 resistance level despite a solid performance in the greenback and far better than expected GDP data.
Meanwhile, the Federal Open Market Committee is expected to ease rates this week and it is expected that the central bank to cut its target rates by 25bps with a possibility to an end of quantitative tightening.
Also, on the radar, we have the Sino-US trade talks clashing with the FOMC and anything other than progress will be seen as a positive for the yellow metal. Adding to this, we have the ongoing tension between the US and Iran and its deadline to extend or cancel sanctions waivers on Thursday which will be crucial for future developments.
Gold price technical forecast
Gold price edged higher on Friday but continued to trade in a tight range between the lower band and the $1422.59 resistance level The price is currently trading just above the lower band represented on the chart as the momentum dropped again this morning.
We will be focusing on the downside and we will be watching closely the $1410.78 support level and any break below the lower purple trend line. Our next level to watch is the $1401.62 support level.
Support: 1410.78 / 1401.62
Resistance: 1435.81 / 1441.79
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