Gold inched higher on Wednesday, increasing the price of the yellow metal to more than $1325.00 an ounce following some key economic releases. The technical bias remains bullish because of a higher high in the recent upside move.
XAU/USD Technical Analysis
As of this writing, the precious metal is being traded near $1332 an ounce. On the upside, a hurdle can be noted near $1374, the high of the last major upside rally on monthly chart ahead of $1400, the psychological level as demonstrated with red color in the given below chart. A break and daily closing above the $1400 level shall trigger renewed buying interest, validating a rally towards the $1440 resistance zone.
On the downside, a support may be noted around $1305, an immediate horizontal support ahead of $1300, a key horizontal support as well as psychological number and then $1280, another major horizontal support area. The technical bias shall remain bullish as long as the $1200 support area is intact.
Aussie Consumer Confidence
Although business conditions for the month of August have reached their highest level in Australia for nine years, consumer confidence has taken a dive, with unenthusiastic buyers the most pessimistic they’ve been in two years.
Business Conditions rose 1 point in August, to hit plus 15 index points, in National Australia Bank’s Monthly Business Conditions and Confidence Survey released on Tuesday.
With “most industries thriving,” the atmosphere for business is the best it’s been since early 2008 in Australia.
Considering the overall technical and fundamental outlook, buying the precious metal around current levels appears to be a good strategy in short to medium term.