- Investors remain on sidelines ahead of the key risk events but positive news reports triggered the yellow metal’s pullback.
- 50-day SMA can limit immediate upside while 100-day SMA is likely crucial downside support.
Gold is on the rounds near $1303 during early Asian session on Wednesday. The bullion recently witnessed pullback from its upward trajectory since the day-start as investors remain cautious ahead of the key events while positive news reports also favored the profit-booking.
Not only absence of new developments concerning the US-China trade deal but geopolitical plays surrounding Libya, Saudi Arabia, the US and the EU were also supporting the yellow metal buyers off-late.
Risk aversion could also be witnessed through 10-year treasury yield from the US that is one basis point weaker than yesterday’s 2.5%.
At the beginning of the day, the US Treasury Secretary Steve Mnuchin was on wires conveying a scheduled trade talk between the US and Chinese lawmakers during Tuesday evening as per the US time. Positive comments from the Fed policymakers were also reported and offered additional pullback in the precious metal prices.
In addition to the results from the trade talk between the world’s two largest economies, the US inflation and minutes of the latest Fed meeting will also be closely observed during the day.
Moreover, EU summit, ECB and a fully packed economic calendar can keep traders busy for the rest of the day.
Gold: Technical Analysis
While 50-day simple moving average (SMA) near $1308 seems to limit the bullion’s immediate upside, a downward sloping trend-line since late-February around $1313/14 can challenge buyers then after. Given the quote crosses $1314, $1325 and $1333 could Bulls’ favorites.
Meanwhile, $1300, $1298 and $1293 can act as nearby supports ahead of highlighting 100-day SMA level of $1285.
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