Gold inched lower on Friday, decreasing the price of yellow metal to less than $1250.00 an ounce following some key economic releases. The technical bias remains bullish because of a higher high in the recent upside move.
As of this writing, the precious metal is being traded near $1244 an ounce. A hurdle can be noted near $1295, the high of the last major upside rally ahead of $1300, the psychological level as demonstrated with red color in the given below chart. A break and daily closing above the red mark shall trigger renewed buying interest, validating a rally towards the $1340 resistance zone.
On the downside, a support may be noted around $1241, an immediate horizontal support ahead of $1238, the 50% fib level and then $1200, a key horizontal support as well as psychological number. The technical bias shall remain bullish as long as the $1200 support area is intact.
US Economic Growth
The U.S. economy slowed less than feared in the first quarter due largely to a jump in consumer spending, providing a slightly more encouraging outlook for growth this year.
Gross domestic product increased at a 1.4 percent annual rate instead of the 1.2 percent reported last month, the Commerce Department said in its final assessment for the period on Thursday.
The reading was the worst since the second quarter of 2016 but above analysts’ expectations, easing fears the economy had been hobbled at the start of this year. The government had pegged first-quarter growth at a paltry 0.7 percent in its first estimate in April.
Considering the overall technical and fundamental outlook, selling the precious metal around current levels appears to be a good strategy in short to medium term.