Gold price manages to preserve weekly gains amid reviving safe-haven demand. Bulls seemed to lack strong conviction ahead of the highly anticipated FOMC decision.
July 31, 2019 | SQUARED DIRECT - The price of gold has managed to climb towards a high of 1433.12 per ounce during yesterday’s session as muted US inflation keeps the prospects for a Federal Reserve interest rate cut alive for this week as well as more to come later in the year.
Markets will be looking to see whether the Fed' is on a new easing cycle, on course to cut rates deeper ver the next 18 months and by how much. However, should the Fed's statement point to something of the contrary, the Dollar will likely catch a bid on a hawkish rate cut outcome.
Meanwhile, there is a focus on China and Us trade talks that get underway just as President Trump lashed out at China, taking credit for weakening China’s economy and downplaying the likelihood of a deal before the 2020 election.
Gold price technical analysis
Gold prices took the bid during yesterday’s session and climbed to a high of $1433.12 per ounce adding more than 0.3% to its value before taking a breather around the $1430 level. The price is currently still hovering around the $1430 level with a slowing but bullish momentum. Overbought zones are still far to reach and the upward move still has more room to go. We will be focusing on the upside especially the $1441.79 resistance level.
Support: 1410.78 / 1401.62
Resistance: 1435.81 / 1441.79
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