Gold Corrects Lower Ahead of US GDP News

FXOpen

Technical Bias: Bearish

The price of Gold plunged broadly this week after skyrocketing to over $1300 an ounce amid safe-haven buying due to the Eurozone crisis. The long term technical bias remains bearish due to a Lower Low on the weekly chart.

Technical Analysis

As of this writing, the precious metal is being traded near $1260 an ounce. A support can be seen around the current level which is the long term 61.8% fib level as demonstrated in the following weekly chart. A weekly closing below the $1263 support area could open doors for a further correction towards the $1200 milestone, the psychological number.

Gold Corrects Lower Ahead of US GDP News

On the upside, the yellow metal is expected to face a hurdle near $1344, the swing high of the last major upside rally ahead of $1388, the high of 2014. The technical bias will remain bearish as long as the $1344 resistance area is intact.

US Growth

The US Bureau of Economic Analysis is going to release the Gross Domestic Product (GDP) report today in New York session. According to the average forecast of different economists, the GDP remained 3.59% in the fourth quarter as compared to 5.0% in the quarter before. Generally speaking, higher GDP reading is considered positive for the economy thus a worse than expected actual outcome will be seen as bullish for Gold and vice versa.

Trade Idea

Considering the overall technical and fundamental outlook, buying the yellow metal around the current levels appears to be a good strategy in short to medium term. The trade should however be stopped out on a daily closing below the $1250 support area.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Forex Analysis
Financial Market News
Forex Market Insights

AUD/USD Consolidates Gains While NZD/USD Dips

AUD/USD is consolidating gains near the 0.6420 zone. NZD/USD is trimming gains and struggling to stay above the 0.5945 pivot zone.

Important Takeaways for AUD/USD and NZD/USD Analysis Today

· The Aussie Dollar started a

An Important Bullish Pattern Forms on the NIO Share Price Chart
Shares

An Important Bullish Pattern Forms on the NIO Share Price Chart

Today, the share price of NIO Inc. (NIO), a Chinese manufacturer of "smart" electric vehicles, is trading above $4 – a development that may be viewed as an optimistic scenario following the drop to $3 in the first half of April,

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season
Indices

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season

Despite the fact that President Trump’s earlier decision to impose tariffs (at higher rates than expected) shook the stock markets, the S&P 500 index (US SPX 500 mini on FXOpen) could still end April without significant losses

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.