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).
|TREND INDEX||OB/OS INDEX||VOLATILY INDEX|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.