Home News Commodities Gold price broke below the key technical support of 1,300 USD

Gold price broke below the key technical support of 1,300 USD

Gold price fell on Thursday after the US dollar regained some ground and uncertainty over Brexit eased.

Gold price support

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Gold price fell on Thursday after the US dollar regained some ground and uncertainty over Brexit eased, but the precious metal held close to a two-week high hit in the previous session as the latest data on US inflation cemented expectations that the Federal Reserve would hold rates. The price of gold broke below the key technical support of 1,300 USD after UK lawmakers voted against a no-deal Brexit, while gains in European stocks further dented bullion’s allure.

The spot gold was down 0.8% at 1,298.25 USD per ounce after touching its highest since March 1 at 1,311.07 USD on Wednesday. The US gold futures also dipped 0.8% to 1,298.40 USD per ounce.

The gold prices have gained about 2% so far this year on expectations of a patient approach by the Fed to raise interest rates and escalating worries over the global economic slowdown. The gold prices have gained about 13% since touching over 1-1/2 year lows in August last year.

Participants on the gold market appear jaded by the Brexit issue and fed up with the whole business.

Among other precious metals, palladium was down by 0.2% at 1,552.76 USD per ounce, while platinum also dipped 0.6% to 832.39 USD per ounce.

The price of silver slipped for the first time in five sessions and was down 1.5% at 15.21 USD per ounce.

Gold price analysis

Gold remained heavily offered through the early North-American session and tumbled to fresh daily lows in the last hour. After a brief mid-session consolidation phase, the previous metal met with some fresh supply and extended its sharp intraday retracement slide from 1-1/2 week tops.

Gold futures

With today’s steep decline, the gold price reversed intra-week gains and has now moved within striking distance of weekly lows. Hence, a follow-through weakness, possibly below the 1,290 USD horizontal support, now looks a distinct possibility.

A convincing break below the mentioned support is likely to accelerate the downfall further towards the commodity’s next major support near the 1,286-1,285 USD region. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the March low of 1,280 USD. The intraday slide dragged the commodity below the key 1,300 USD psychological mark and tested 50% Fibonacci retracement level of the 1,280-1,311 USD latest up-move.

Slightly oversold conditions on the 1-hourly chart turned out to be the only factor that helped limit further downside and find some support near the mentioned Fibo. level.

On the flip side, the 1,297 USD level, closely followed by the 1,300 USD handle now seems to act as an immediate resistance, which if cleared might lift the metal back towards testing the 1,309-1,310 USD supply zone.

Silver price analysis

During trading yesterday, silver rose from 15.42 USD to 15.42 USD per ounce. This morning it traded at levels 15.41 USD per ounce.

Silver futures

Today, if silver overcomes the resistance range of 15.48-15.49 USD, the metal will target reaching and testing the zone 15.56-15.56 USD. Upon success, the upward trend will continue to 15.60-15.61 USD.

If silver falls below the support area of 15.37-15.36 USD, the next support will be the zone 15.32-15.32 USD. In case of a break, the downward trend will continue to 15.25-15.24 USD. The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of 14.98 USD.