Gold inched higher on Wednesday, increasing the price of yellow metal to more than $1340.00 an ounce after some key economic releases. The technical bias remains bullish because of a higher high in the ongoing upside move.
XAU/USD Technical Analysis
As of this writing, the precious metal is being traded near $1341.46 an ounce. A hurdle can be noted near $1350, 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 $1311, an immediate horizontal support ahead of $1300, the psychological level as well as another key horizontal support area and then $1250, a major psychological number. The technical bias shall remain bullish as long as the $1200 support area is intact.
US Consumer Sentiment
U.S. consumer sentiment fell in the January mid-month reading, moving further from the decade high reached in October.
The University of Michigan’s survey of consumer attitudes for January slipped to 94.4, after falling to 95.9 in December. Economists polled by Reuters expected the reading to increase to 97.
The survey’s chief economist Richard Curtin noted that 34 percent of consumers spontaneously mentioned tax reform. Of those, 70 percent of consumers said the impact from the new tax reform law would be positive, while 18 percent said it would be negative.
Considering the overall technical and fundamental outlook, selling the precious metal around current levels appears to be a good strategy in short to medium term.