Gold prints fresh highs, rises to test $1340
- The yellow metal gains momentum as US yields move lower.
- Price back to the critical $1340 level: a close above should signal more gains ahead.
The precious metal gathered strength over the last hours, breaking a range to the upside. It reached a fresh daily high at $1340, and it is hovering slightly below.
The move higher in gold takes place in the context of a low volatility session across financial markets. In the currency space, majors are moving sideways in small ranges and in Wall Street equity prices are up by around 0.25% on average. US yields dropped back to daily lows, with the 10-year at 2.10%. The DXY is up 0.07%.
Market participants await news regarding U.S.-China trade conflict ahead of the G20 summit. Data from the US showed that weekly jobless claims came in slightly above market expectations and both, the import price index and the export index, declined in April. The numbers had no impact on markets. On Friday, retail sales number are due.
Short-term outlook
The bullish momentum is increasing with the price holding on top of yesterday’s highs. The immediate resistance is seen at $1343 and then $1348 (June 7 high). If gold drops back below $1336, a test of $1330 could be seen.
On a wider perspective, the trend continues to point to the upside, but a daily close clearly above $1340 is needed to open the doors to more gains.
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Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
