Gold Price Bullish Momentum Above $1,700

Gold prices
Gold prices

The gold price rebound today after the sharp correction from seven-year highs amid USD strength. Dismal economic data from the USA shifted to the U.S. dollar as a safe-haven asset. The U.S. Industrial Production came in at -5.4%, below analysts forecasts of -4% in March, the U.S. factory output fell in March by the most since 1946. The Capacity Utilization came in at 72.7% below the expectations of 73.8%. The retail sales in the U.S. were down a record 8.7% on March below the expectations of 8%.

Worries of a deep global recession due to the coronavirus outbreak impact and disastrous economic data, supported the precious metal last week. Gold prices could continue to move higher amid rising fears of a deep global recession due to the novel coronavirus outbreak. A stronger dollar can limit gold gains, while when risk-off mood prevails in markets, investors sell everything to cover in cash.

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Gold Price Technical Evaluation 

Gold price is 0.44% higher at $1721 as the buyers return after yesterday’s pullback from seven-year highs. Gold price supported by fundamental and the technical picture is bullish as long as the price hold above the 1,700 mark. 

On the upside, initial resistance for gold price stands at $1,723 the daily high. More selling pressure might emerge at $1,730 the high from yesterday’s trading session. A break above would test the seven-year highs at 1,746 from April 14.

On the other side, first support stands at $1,711 the daily low. If the gold price breaks below, the next support area will be met at 1,705 the low from yesterday trading session. Next support zone will be reached at 1,677 the low from April 13. 

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