Gold Intraday: Edging Lower as Investor Sentiment Continues to Improve
George Lam May 27, 2020 11:52 AM
Spot gold slid 1.2% on day yesterday, down for a third time in the last four trading sessions...
Spot gold slid 1.2% on day yesterday, down for a third time in the last four trading sessions. While the latest escalation of U.S.-China tensions failed to lift up gold prices, investors' sentiment keeps improving, amid gradual reopening of major economies.
Meanwhile, Federal Reserve Bank of St. Louis President James Bullard said he expects the U.S. economy to recover strongly in the third quarter, with jobless rate dropping below 10% by the year-end.
The Federal Reserve will release its latest Beige Book today, though investors are likely to be well-braced for downbeat assessment of the economic situation.
From a technical point of view, spot gold stays on the downside as shown on the 1-hour chart. The bearish channel we mentioned on Monday remains intact and gold has now broken below a longer-term rising trend line, which emerged from May 1. Bearish investors may consider $1,726 as the nearest resistance level, with prices likely to test the 1st and 2nd support at $1,703 and $1,694. In an alternative scenario, a break above $1,726 might trigger a further rebound to $1,740.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.