On Thursday, the price of safe heaven metal trades bullish below 1344 during the European session as the risk sentiment remained weak. Moreover, the rate cut forecasts from the Federal Reserve also extended support to the precious metal. Recalling our daily brief, the U.S. inflation reports missed the estimates, fueling concerns about the growth of worlds second biggest economy. Gold futures for August delivery, traded on the Comex division of the New York Mercantile Exchange, were up 0.2% at $1,339.95 per ounce.
Gold gain support after investor sentiment got a hit after U.S. President Donald Trump said a trade deal would not be confirmed until China agreed to follow the terms earlier this year.
Secondly, global equities also opened lower and continue to stay weaker. We can say, there’s some safe-haven selling in stocks which are ultimately triggering demand for the yellow metal gold. Looking ahead, the U.S. Fed meeting next week could help us predict the long term movement in gold.
Gold – Technical Outlook
Yellow metal gold still consolidating in a narrow trading range of $1,345 – $1,322. The bearish breakout of $1,322 can extend the selling trend until $1,310, the 61.8% Fibonacci support level.
On the flip side, the bullish breakout of $1,345 is likely to open further room for buying until $1,356 and $1,366.
Key Trading Level: 1333.99