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GOLD to rebound off $6500? May 22, 2019
GOLD remained unchanged and indecisive below $1276 area sustaining the bearish momentum. Gold prices are likely to advance $1265 support area.
Due to economic and political turbulence, investors often seek protection from the safe-haven gold. However, gold didn’t manage to gain ground. The bullish bias is still prevailing in the market as the price remains above $1250 area with a daily close. The price is still residing inside the Bullish Flag pattern which indicates further bullish momentum. The price manages to remain inside the pattern, a break above is reachable.
US-China trade tension has eased after the U.S. temporarily lifted curbs on China’s Huawei Technologies. Nevertheless, Chinese President Xi Jinping hinted recently that the trade war with the U.S. would not end in the near future. The US-China trade tension is expected to weaken the USD gains as the impact of the trade war is also going to hurt the US economy significantly.
May’s FOMC meeting is highly anticipated by the traders. Commentary reiterating officials’ wait-and-see approach amid a raft of global uncertainties may cool rate cut hopes. That seems inherently USD-supportive, with haven demand acting as a further accelerant as markets pining for policy support tilt into the risk-off territory. Gold is vulnerable in this scenario.
As of the current scenario, the price is expected to push lower towards $1265 area before pushing higher again with a target towards $1276 and later if it is broken above with a daily close, further upward pressure with a target towards $1300 is expected.
SUPPORT: 1250, 1265
RESISTANCE: 1276, 1300
BIAS: BULLISH
MOMENTUM: VOLATILE
The material has been provided by InstaForex Company – www.instaforex.com
