Gold Poised for More Upside Rallies As Bulls Gain Strength

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.

Gold Poised for More Upside Rallies As Bulls Gain Strength

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.

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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.

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