The price of gold extended downside movement on Friday, dragging the price of yellow metal to less than $1160 an ounce in a range-bound Asian trading session. The technical bias remains slightly bullish due to a Higher Low on hourly timeframe in the last downside dip. The price is however holding off downward trendline nicely which may increase selling pressure in near future.
As of this writing, the price of gold is being traded near $1159 an ounce. A hurdle can be seen around $1161, the trendline resistance ahead of $1166, the swing high of the last hourly wave as demonstrated in the following chart. A break and daily closing above the trendline resistance could incite renewed buying interest, validating a move towards the 1167 and 1180.
On the downside, the price of bullion is likely to find a support around $1158, the low of the last hourly candle ahead of $1150, the confluence of psychological number as well as trendline support. The technical bias will remain slightly bullish as long as the $1152 hurdle remains intact.
US Producer Price Index
The US Producer Price Index news is due today in the New York opening session. According to the average forecast of different economists, the producer price index remained 0% in February as compared to the same reading in the same month of the year before. Generally speaking, higher producer price index reading is considered positive for the economy thus a better than expected actual outcome may spur bearish momentum in the price of gold.
Considering the overall technical and fundamental outlook, buying the yellow metal on an hourly close above the trendline resistance area could be a good strategy in short to medium term.
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