Commodity
by FXOpen on April 29, 2019

Gold price outlook: there is a major bullish trend line in place

Gold prices fell on Monday in Asia, as the markets expect the results of the next FOMC meeting.

Gold futures with delivery in June, traded on the Comex division of the New York Mercantile Exchange, fell 0.1% to $1,287.05 per ounce by 1:16 EST (05:16 GMT).

The Fed will complete its two-day meeting on Wednesday amid expectations that interest rates will remain unchanged. The meeting will take place after official data showed on Friday that the US economy grew faster than expected in the first quarter.

The data on US soft inflation published on Friday put pressure on the dollar and were mentioned as support for the precious metal at the beginning of the day.

The price index for personal consumption expenditures, excluding food and energy, fell to 1.3% in 12 months from March, compared with 1.8% in the previous month.

In addition, Goldman Sachs said that purchases of gold at the central bank have also been running strong, which is another factor that could help bring gold prices back to $ 1,300.

Gold price technical analysis

Gold price started a steady rise from the $1,267 swing low against the US Dollar. The price climbed above the $1,275 resistance level to move into a positive zone towards $1,285.

Gold-Price-Chart

There was a close above the $1,280 resistance level and the 50 hourly simple moving average. The price recently tested the $1,288 level and it is currently correcting gains.

On the downside, there is a major bullish trend line in place with support at $1,284 on the hourly chart. In the short term, the price could dip towards the $1,284 or $1,282 support levels before resuming its upward move.

On the upside, an initial resistance is near the $1,288 level. If there is a break above the recent high, the price could climb towards the $1,292 or $1,294 resistance in the near term.

By FXOpen

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