Gold prices have edged higher this Thursday after the Bureau of Economic Analysis reported slower-than-expected growth in the US economy for the second quarter of 2021.
The Q2 2021 US GDP (advanced) came in at 6.5% versus the consensus number of 8.5%. The slower growth also adds support to the Fed’s narrative that any kind of tapering at this time may be premature.
The rise in gold prices also came against the backdrop of a dovish FOMC statement and comments from the FOMC Chair Jerome Powell on Wednesday after the decision, which pointed to a reluctance of the Fed to start tapering as quickly as the market had hoped.
Gold price is up 1.09% this Thursday as of writing.
Technical Outlook for XAU/USD
Gold price on the daily chart has cleared the 1815.20 price mark by a healthy violation distance, allowing the daily candle free passage towards the resistance wall formed by the 1828/1840 price levels. If the price advances beyond this point, the gold price will encounter the next barrier at 1860.77. Above this level, 1881.68 and 1900.95 are price targets to the north.
On the other hand, rejection and pullback from the resistance wall retest 1815.20 as new support, leaving additional pivots to the south at 1800.00 (psychological) and 1789.49 (23 July low).