Gold prices hold near two-week lows touched in the previous session after cautious comments from US Trade Representative Robert Lighthizer stoked concerns over progress in the US-China trade talks.
The spot gold was down by 0.1% at 1,318.06 USD per ounce. The safe-haven metal hit the lowest since February 15 at 1,316.43 USD per ounce in the previous session but marked its fifth straight monthly gain.
The US gold futures were flat at 1,321.40 USD per ounce.
Overall, gold is expected to go up with some corrections and prices will move around the 1,310-1,330 USD levels depending on the US dollar with main support comes from Federal Reserve’s dovish stance and a lot of central banks are keen on accumulating gold. The precious metal’s recent consolidation is supported by the indecision the financial markets have in pricing in what will be the Fed’s next move.
Gold may struggle climbing higher until there is further deterioration in the US data, that would seal the market expectation for the next move to be a rate cut.
Meanwhile, at least 8 tons of gold were removed from the Venezuelan central bank’s vaults last week, an opposition legislator and three government sources told Reuters, in the latest sign of President Nicolas Maduro’s desperation to raise hard currency amid tightening sanctions.
Spot palladium was flat at 1,529 USD on Thursday, after retreating from its all-time peak of 1,565.09 USD per ounce scaled earlier in the week. The autocatalyst metal surged about 21% so far this year on widening supply tightness in the market.
Spot silver rose by 0.3% to 15.78 USD per ounce.
The platinum was up by 0.4% at 868 USD per ounce but was trading below its more than three-month high of 871.94 USD hit in the previous session.
Gold price analysis
During trading yesterday, gold fell from 1,328.69 USD to 1,319.49 USD per ounce. This morning the precious metal is traded at 1,320.85 USD.
If today gold overcomes the resistance zone of 1,325.92-1,327.18 USD, it will target reaching and testing the zone 1,334.23-1,334.86 USD. Upon success, the upward trend will continue to 1,338.77-1,340.03 USD.
If the gold fells below the support zone 1,314.33-1,313.07 USD, the next support will be the zone 1,309.16-1,308.53 USD. In case of a breakthrough, the downward trend will continue to 1,301.48-1,300.22 USD.
Silver price analysis
During trading yesterday, silver fell from 15.90 USD to 15.72 USD per ounce. This morning the precious metal is traded at 15.72 USD.
If silver overcomes the resistance range of 15.87-15.91 USD, it will move towards reaching and testing the zone 16.09-16.11 USD. Upon success, the upward trend will continue to the zone 16.18-16.22 USD.
If the silver fells below the support range of 15.60-15.56 USD, the next support will be the zone 15.48-15.46 USD. In case of a breakthrough, the downward trend will continue to 15.29-15.25 USD.
Development Bank of Singapore forecasts increase in gold prices
The research team of Development Bank of Singapore Limited, suggests that the market is buying gold and seeing a pseudo bullish reverse, but resistance at 1,356 USD and the pattern’s neckline at 1,362 USD would pose as substantial barriers.
Gold is currently staring right at channel support but needs to run lower to complete a corrective dip. A channel-support break would likely push gold lower toward 1,303 USD. There, the market would seek a timeout & feature a bout of consolidation.
“But that is likely an effort to buy time before gold eventually sees any bounce higher and has more passengers alight from the gold bus. As for the broader picture, the market needs to see the further waning interest and momentum loss to feature decline for 38.2% Fibo retracement of Aug18’s 1,160 USD lows vs the recent 1,347 USD high, around 1,275 USD. That is likely to be a respectable support zone. Certainly, that would be a better zone to rebuild longs”, says the analysis of the Development Bank of Singapore.