GOLD has lost ground against USD recently. Hence, the price resided at the edge of 1276 support area with an impulsive bearish pressure.
GOLD hit two-week lows on Friday as the US dollar surged up following the release of the data that showed US consumer sentiment was at a 15-year high. The US dollar was also supported by reports about China's impatience over the progress of trade negotiations with Washington. The US Index showed a rise of 0.1% to 97.87 is the two-week high which became the catalyst for the market sentiment to boost. Gold has in a unique position in the US-China trade war. A positive resolution on that means bullion could benefit from more jewelry and other bullion-related cosumption in China. A negative outcome could bolster gold's standing as a safe-haven hedge against further weakening in Chinese growth.
This week, a fresh round of economic data will be closely watched at a time when markets are trying to gauge the impact of the trade conflict on the outlook for growth, both in the US and the broader global economy. The US is to publish reports on durable goods orders and data on both existing and new home sales figure.
The price is still residing inside the Bullish Flag pattern while being above the support area above 1265 with a daily close. Though there are not much of a Bullish Divergence. However, the figure above 1265 with a daily close indicates the possibility of further upward pressure.
As of the current scenario, despite the impulsive bearish pressure due to gains on the USD side, GOLD is expected to regain momentum as it remains above the important support area of 1265 whereas a break above 1300 is likely to establish strong bullish momentum. Thus, the price might go higher with a target towards 1500 resistance area in the future.
- SUPPORT: 1265, 1276
- RESISTANCE: 1290, 1300
- BIAS: BULLISH
- MOMENTUM: VOLATILE