FXOpen
Gold inched higher on Wednesday, increasing the price of yellow metal to more than $1240.00 an ounce following some key economic releases. The technical bias remains bullish because of a higher high in the recent upside move.
Technical Analysis
As of this writing, the precious metal is being traded near $1246 an ounce. A hurdle can be noted near $1295, the high of the last major upside rally ahead of $1300, the psychological level as demonstrated with red color in the given below chart. A break and daily closing above the red mark shall trigger renewed buying interest, validating a rally towards the $1340 resistance zone.
On the downside, a support may be noted around $1241, an immediate horizontal support ahead of $1238, the 50% fib level and then $1200, a key horizontal support as well as psychological number. The technical bias shall remain bullish as long as the $1200 support area is intact.
US Current Account
The U.S. current account deficit widened slightly in the first quarter, as the country imported more crude oil, car parts, and supplies for its factories. The Commerce Department said on Tuesday the current account deficit, which measures the flow of goods, services, and investments into and out of the country, expanded by 2.4 percent to $116.8 billion.
The current account deficit for the fourth quarter was revised up to $114.0 billion from the previously reported $112.4 billion. Economists polled by Reuters had forecast the deficit rising to $123.8 billion in the first quarter. The first-quarter current account deficit represented 2.5 percent of gross domestic product, up from 2.4 percent in the fourth quarter.
Trade Idea
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.
Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.
* FXOpen International, Innovative Broker of 2022, according to the IAFT
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.
Latest from Forex Analysis
Latest articles
US Government Shutdown: Assessing Economic Impact and Recession Risks
The recurring spectre of a government shutdown has once again loomed over the United States, prompting concerns about its potential economic consequences. The shutdown may occur this weekend unless lawmakers agree on spending levels and whether to give more aid
S&P 500 Analysis: Price Reaches The Edge of Abyss
Investors in the US stock market have serious reasons to worry: → The likelihood of a shutdown of government agencies is becoming more and more real. It could happen as early as next week if a budget agreement is not reached
Bitcoin Cash Analysis: Promising Resistance Breakout
Yesterday, the head of the SEC regulator, Gary Gensler, answered questions for 4 hours before the Financial Services Committee of the US House of Representatives, which, among other things, related to cryptocurrencies. What has become known: → on the eve of