Gold Poised for More Upside Rallies As Bulls Gain Strength

Gold rallied on Wednesday, increasing the price of yellow metal to more than $1225.00 an ounce following the US current account balance news. The technical bias remains bullish because of a higher low in the recent downside move.

Technical Analysis

As of this writing, the precious metal is being traded near $1248 an ounce. A hurdle can be noted near $1250, the trendline resistance area as demonstrated with pink color in the given below chart. A break and hourly closing above the pink trendline shall trigger renewed buying interest, validating a rally towards the $1264 resistance area.

On the downside, a support may be noted around $1244, the red trendline support ahead of $1237, another trendline support as demonstrated with black color in the given above chart. Not to mention, $1237 is also the 50% fib level support area. The technical bias shall remain bullish as long as the $1226 support area is intact.

US Current Account Balance

The U.S. current account balance fell less-than-expected last month, official data showed on Tuesday. In a report, Bureau of Economic Analysis said that U.S. current account balance fell to a seasonally adjusted -112.4B, from -116.0B in the preceding month whose figure was revised down from -113.0B. Analysts had expected U.S. current account balance to fall -128.2B last month.

Trade Idea

Considering the overall technical and fundamental outlook, buying the yellow metal around current levels appears to be a good strategy in short to medium term.

usmanahmed7290@gmail.com'

Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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