FXOpen
Gold rallied on Wednesday, increasing the price of yellow metal to more than $1225.00 an ounce following the US current account balance news. The technical bias remains bullish because of a higher low in the recent downside move.
Technical Analysis
As of this writing, the precious metal is being traded near $1248 an ounce. A hurdle can be noted near $1250, the trendline resistance area as demonstrated with pink color in the given below chart. A break and hourly closing above the pink trendline shall trigger renewed buying interest, validating a rally towards the $1264 resistance area.
On the downside, a support may be noted around $1244, the red trendline support ahead of $1237, another trendline support as demonstrated with black color in the given above chart. Not to mention, $1237 is also the 50% fib level support area. The technical bias shall remain bullish as long as the $1226 support area is intact.
US Current Account Balance
The U.S. current account balance fell less-than-expected last month, official data showed on Tuesday. In a report, Bureau of Economic Analysis said that U.S. current account balance fell to a seasonally adjusted -112.4B, from -116.0B in the preceding month whose figure was revised down from -113.0B. Analysts had expected U.S. current account balance to fall -128.2B last month.
Trade Idea
Considering the overall technical and fundamental outlook, buying the yellow 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
Market Analysis: US Dollar On the Rise Despite Weak PMI Data
EUR/USDThe euro fell against the US dollar on Friday as economic data showed a contraction in economic activity, which could prompt European Central Bank hawks to soften their policy stance. Preliminary data indicates a contraction in economic activity in
Economic calendar: NASDAQ 100 May Keep Falling, High Volatility in Oil Markets, Potential Appreciation of the US Dollar
The US, Japan and the UK may have kept interest rates on hold last week, but with the Federal Reserve indicating that rates will stay higher for longer, there is turmoil in the equity markets. The NASDAQ 100 fell 500
Financial Markets Waking Up after a Turbulent Week: Important News
The main event of last week was information from the Fed. Jerome Powell once again demonstrated his determination to maintain a tough political stance, which caused: → increase in bond yields. Yields on 10-year securities reached their highest since 2009; → the