Gold Rate Outlook: Retesting 2019 Lows, Eyes on NFP Report
Gold Price Analysis and Talking Points:
- Gold Prices Edging Lower Since FOMC, Eyes on NFP
- Gold Rate Technical Analysis | Topside Resistance Holds, Retest of 2019 low
See our quarterly gold forecast to learn what will drive prices throughout Q2!
Gold Prices Edging Lower Since FOMC, Eyes on NFP
Gold prices have continued to edge lower since the FOMC meeting with the precious metal now eying a retest of the 2019 low ($1266). Fed Chair Powell had poured cold water on the idea of a rate cut, after stating that inflation drop had been due to “transitory” factors, consequently, bond yields have been tracking higher since the meeting, while gold prices have continued to edge lower. On the data front, eyes will be on today’s NFP report, in which the risk is for an upside beat following strong ADP data, as such, another robust NFP report could push gold to fresh 2019 lows. However, as has usually been the case, focus will be on the wage components as the FOMC look for inflationary pressures.
Gold Rate Technical Analysis | Topside Resistance Holds, Retest of 2019 low
Last week we had noted that failure to at the 61.8% Fibonacci retracement could spark a retest of the 2019 low (full story), which in turn keeps the near-term outlook for gold modestly bearish. A fresh 2019 low brings the 50% Fibonacci retracement ($1262) in focus, however, the uptrend from the 2018 low is holding for now.
GOLD PRICE CHART: Daily Time-Frame (Mar 2018-May 2019)
GOLD TRADING RESOURCES:
- See our quarterly gold forecast to learn what will drive prices through mid-year!
- Just getting started? See our beginners’ guide for FX traders
- Having trouble with your strategy? Here’s the #1 mistake that traders make
--- Written by Justin McQueen, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.