Gold: Break of 100-day SMA highlights $1281 for sellers
- The USD pullback dragged the bullion under 100-day SMA, highlighting $1281 support for sellers.
- Upside clearance of $1287/88 becomes pre-requisite to aim for $1296 and $1300.
Gold is on the rounds near $1286 during early Tuesday. The yellow metal has been declining lately as recent improvements in market risk sentiment cut its safe-haven demand.
In spite of its refrain from closing beneath 100-day simple moving average (SMA) on Monday, the bullion again slid beneath the important SMA level on early Tuesday as latest comments from the Fed policymakers remained mostly upbeat. Adding to the optimism was positive news surrounding the US trade deals with China and Japan.
Traders gave less emphasis on the yesterday’s sluggish equity market performance after revenues from Goldman Sachs and Citigroup dropped.
The precious metal sellers may highlight the trade positive news and the expected increase in the US industrial production with an additional downside.
Though, doubts concerning the trade deal, Brexit and the on-going US earning season could keep entertaining Gold traders.
Gold Technical Analysis
An upward sloping trend-line stretched since late-January, at $1281.00, could offer immediate support during further declines, a break of which highlights the importance of the year 2019 lows near $1276.
Alternatively, 100-day SMA level of $1287/88 can limit the quote’s near-term upside whereas $1296, $1300 and 50-day SMA level of $1306 can play their roles of resistance then after.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
