The price of gold inched higher on Monday, increasing the precious metal to more than $1090 an ounce ahead of some key economic events. The technical bias remains bearish due to a Lower Low and Lower High in the recent wave.
As of this writing, the yellow metal is being traded around $1096. A hurdle may be noted near $1100, the psychological level ahead of $1107, the 23.6% fib level and then $1126, the 38.2% fib level as demonstrated in the following daily chart.
On the downside, the pair is expected to find a support around $1077, the swing low of Friday bullish pin bar ahead of $1050, the psychological number and then $1043, the multi-year low. The technical bias will remain bearish as long as the $1206 resistance area is intact.
US Durable Goods
The US Bureau of Census is due to release the Durable Goods data today during the early New York session. According to the average forecast of different economists, the durable goods registered 3.0% reading in June as compared to -2.2% reading in the month before. Generally speaking, higher durable goods orders received by US manufacturers are seen as positive for the economy and vice versa thus a better than expected actual outcome will be considered bearish for gold.
Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term. The trade should however be stopped out on a daily closing below the Friday’s low as described above.