Gold Prices Bottoms Out as USD Eases, Subdued Price Action Seen Amid Muted Week Ahead

Gold Daily Chart and mercantile events

Fundamental Forecast for Gold Price: Neutral

Gold Analysis and Talking Points:

  • Gold prices post weekly arise as a USD Index pulls back
  • The changed steel set for a quieter week amid a light mercantile calendar

Gold Prices Sees a First Weekly Rise in a Month

Gold prices sees a initial weekly arise in a month, gaining over 1.5% as a USD liberation comes to a hindrance following a rather uninspiring acceleration report, whereby a core readings fell brief of mercantile forecasts. As such, a lift behind in a US Dollar from 2018 highs (93.42), joined with a disaster for prices to mangle subsequent a 2018 operation lows ($1301) had pushed a changed steel behind above $1320. As we demeanour forward to subsequent week, a view on bullion prices is neutral as a miss of important events could potentially lead to a rather resigned week.

US Retail Sales will be a categorical mercantile information indicate for a week ahead, that is approaching to see a medium drop to 0.3% in Apr from 0.6%. As from this, we will see a recover of production and housing information from a US, however, this would doubtful yield too most cost movement for a greenback and so have a singular impact on a changed metal. The miss of pivotal mercantile releases serve backs adult a perspective that we could see bullion trade sideways.

Next week’s Economic Calendar

Gold Prices Bottoms Out as USD Eases, Subdued Price Action Seen Amid Muted Week Ahead

Positive Sign for Gold Prices

The new dermatitis of a $1302-1317 neutral operation and a tighten above $1320 provides positives for a changed metal, 100DMA during $1326 (also a 38.6% Fibonacci Retracement of a $1365-1301 fall) acts as insurgency in a short-term. However, a converging above a 100DMA and a 38.6% Fib could yield a matter for aloft prices, while on a downside, support is situated during $1317, breaching subsequent would see bullion behind in a $1302-10 range. For now, no dermatitis is in steer for a yellow metal.

GOLD PRICE CHART: DAILY TIMEFRAME (November 2017-April 2017)

Gold Prices Bottoms Out as USD Eases, Subdued Price Action Seen Amid Muted Week Ahead

Chart by IG

GOLD TRADING RESOURCES:

— Written by Justin McQueen, Market Analyst

To hit Justin, email him during Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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