Gold inched higher on Wednesday, increasing the price of the yellow metal to more than $1270.00 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 $1275 an ounce. A hurdle can be noted near $1300, a key psychological level ahead of $1357, the high of the last major upside rally on the daily chart and then $1400, the psychological level. 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 $1288, an immediate horizontal support ahead of $1280, the 50% fib level as well as another key horizontal support area and then $1200, a major psychological number. The technical bias shall remain bullish as long as the $1200 support area is intact.
RBA Interest Rate
The Reserve Bank of Australia has left official interest rates on hold for a fourteenth consecutive month with no sign it is in a hurry to increase them anytime soon. Following its regular monthly meeting, governor Philip Lowe confirmed official rates would remain at 1.5 percent. In a statement, Dr. Lowe said there were signs of a lift in non-mining business investment that would feed into the broader economy.
Employment growth was strong on the back of more jobs and increasing labor force participation across the entire country.
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 best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT