April 11, OctaFX – Gold price edged lower through the early European session on Thursday and eroded a major part of the previous session’s goodish uptick to near two-week tops.
The non-yielding yellow metal remained supported on Wednesday after the minutes of March 19-20 FOMC meeting indicated that a majority of policymakers saw interest rates to remain on hold in 2019. The Fed’s patient stance triggered some fresh US Dollar weakness and provided an additional boost to the dollar-denominated commodity.
However, improving risk-sentiment, amid renewed trade optimism and positive Brexit development, dented the precious metal’s relative safe-haven status, which coupled with a modest USD rebound capped the up-move beyond the $1311-12 supply zone, rather prompted some long-unwinding trade on Thursday.
The commodity, for now, seems to have snapped three consecutive days of winning streak but has still managed to hold its neck comfortably above the key $1,300 psychological mark as market participants now look forward to the US macro releases for some meaningful trading impetus later during the early North-American session.
The US economic docket features the release of March PPI figures and initial weekly jobless claims, which followed by speeches by influential FOMC member might influence the USD price dynamics and collaborate towards producing some meaningful trading opportunities on Thursday.
Gold price technical forecast
Immediate support is pegged near the $1,300 mark, below which the commodity is likely to accelerate the slide towards $1293-92 horizontal zone en-route 100-day SMA support near the $1284 region. On the flip side, the $1308-10 region might continue to act as an immediate hurdle, which if cleared decisively has the potential to lift the metal further towards testing its next major hurdle near the $1322-23 area.
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