$2,050 prods the gold market is headed for a new record high
After re-entering the 13-month high of $2,049, the price of gold oscillates within a $15 trading range. Nevertheless, despite widespread US Dollar loss, the yellow metal is still poised for a four-day advance and is preparing to hit its second straight weekly high.
The price of gold (XAU/USD) oscillates within a $15 trading range after re-entering the $2,049 level and re-approaching the 13-month high. Nevertheless, despite widespread US Dollar loss, the yellow metal is still poised for a four-day advance and is preparing to hit its second straight weekly high. Nevertheless, the lower inflation data and softening hawkish Fed predictions weigh heavily on the dollar. The imminent danger to the US Dollar’s status as a reserve currency may also be impacting on it.
In addition to the US Dollar Index (DXY) hitting a new low for the year, the XAU/USD prices are driven by expectations for higher growth in Asia, one of the world’s largest consumers of gold, as well as concerns about a potential recession reflected in low yields.
Moving forward, it will be crucial to keep an eye on the US Retail Sales for March, the Michigan Consumer Sentiment Index (CSI) for April, and the University of Michigan’s (UoM) 5-year Consumer Inflation Expectations for clear cues for the gold traders.
Given the reasons, unless the scheduled data deliver a significant positive surprise, the gold bulls are likely to maintain control. The coming week’s light schedule, save for the Purchasing Managers Indexes (PMIs), may limit the corrective fall in the price of gold, even if the numbers rise.
GOLD TECHNICAL ANALYSIS DAILY CHART:
Gold is currently trading in up channel.
Gold is currently trading above all SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
Gold resistance is at 2040.62 & its immediate support level is 2031.82
HOW TO TRADE GOLD
Gold is trading in up channel. Price is continuing to rise above the zone of resistance. Remain bullish on it since it will keep trading higher till the trend changes.