- Gold sellers await fresh clues after the price slump, backed mainly by the Fed.
- A busy day as per the economic calendar can keep entertaining traders.
Having slipped to the two-week low, Gold prices recover to $1415.20 during Thursday’s Asian session.
The yellow metal earlier slumped after the US Federal Reserve lured greenback buyers, despite announcing a 0.25% rate cut, as comments from the central bank Chief turned down the forecast of the beginning of the Fed’s easy money cycle.
Manufacturing activity contraction in China, as indicated by the official Manufacturing Purchasing Manager Index (PMI), and the absence of breakthrough after Shanghai’s trade talks with the US could also be considered negatives for the yellow metal as the dragon nation is one of the top gold consumers.
On early Thursday, the quote bounced off 21-day exponential moving average (EMA) after the US announced sanctions on Iran’s Foreign Minister Mohammad Javad Zarif. Also supporting the pullback is the US President Donald Trump’s criticism of the Fed’s monetary policy.
Traders will now look forward to a busy day that starts with China’s Caixin Manufacturing PMI and has Bank of England’s (BOE) monetary policy meeting, coupled with few second-tier data from the US, in the kitty.
Technical Analysis
While 21-day EMA near $1413 acts as immediate support, sellers will wait for a sustained downpour beneath $1382, comprising multiple bottoms marked in late-June and early-July, to aim for 100-day EMA level of $1354. On the contrary, $1432 and $1438 can entertain short-term buyers prior to challenging them with the previous month’s top of $1452.71.
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