8 May 2019, AtoZ Markets – Gold extended its sideways consolidative price action during yesterday’s and today’s early session as prices are still oscillating between the $1280 and the $1285 levels. The yellow metal is yet to extend in neither of its directions and has been confined to a sideways channel as speculators scalp the channel while watching very carefully the news.
Despite the latest escalation in the US-China trade tensions, the fact that negotiations will continue this week eased concerns about a full-blown trade war between the world’s two largest economies and dampened the precious metal safe-haven status. However, the ongoing slide in the US Treasury bond yields extended some additional support to the non-yielding yellow metal and further collaborated to a range-bound price action amid absent relevant market moving economic releases from the US.
Gold price technical forecast
Gold prices are having a hard time gathering the right momentum to break above near resistance levels after printing a high of $1285.73 per ounce so far this week. The price is currently trading just above the $1284 level with a relatively bullish momentum as the RSI points out. The upside will remain in our focus and we expect the price to break above the 1285.35 resistance level. The main level to watch will be $1288.35 resistance level.
Support: 1280.11/ 1277.18
Resistance: 1282.19/ 1285.35
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