Gold flat lined at one-month high
Gold prices are trading flat lined around $1268/Oz levels, the highest level since May 1 as the upward revision of the US Q1 GDP failed to boost the treasury yields.
Consolidation ends with an upside breakout
The metal was largely restricted to a range of $1245-$1263 levels since May 18 before the prices rose to a high of $1269 levels on Friday.
US Q1 GDP was revised higher to 1.25 from the initial estimate of 0.7%. However, the upbeat GDP was overshadowed by a more forward looking, durable goods orders number, which fell 0.7% in April, following a 2.3% rise in March.
Orders for capital goods, excluding aircraft and military equipment, were flat for the second straight month. The drop in the corporate spending made sure the 10-year treasury yield remained flat lined around 2.24%.
Consequently, the metal jumped to a one-month high of $1269 levels. The US markets are closed today; hence the trading volumes could be low. The hawkish comments from Fed’s Williams earlier today failed to move gold or related markets.
Gold Technical Levels
A break above $1270.40 (May 1 high) would expose resistance at $1273.88 (Apr 19 low) and $1278 (Apr 25 high). On the other hand, a breakdown of support at $1265 (May 18 low) could yield a pull back to $1256 (50-DMA) and $1247.81 (May 24 low).
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
