Gold Price: Bears Look to Consolidate Profits Around $1,550 Support

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The gold price appears to be suffering short-term consolidation as it continues to trade in the range of $1,550 to $1,570. The price of the yellow metal spiked last week to hit a new multi-year high of about $1,611 before pulling back to close just below $1,570. 

Since then the price of gold has oscillated between %1,550 and $1,570 as the bulls and the bears tussle to take control. There is a lack of momentum to drive the gold price in one direction.

Gold Price Fundamentals Overview

From a fundamental perspective, gold is trading at the back of a relatively busy period in the US market. The signing of the US-China trade deal late last week set the pace for the price of the yellow metal as it plunged to bottom at around $1,540. Since then, there has been nothing major to trigger another price swing.  The latest round of economic data has been less than influential in affecting the gold price.

On Tuesday, the 3-month bill auction rate remained unchanged at 1.53% while the 6-month counterpart edged lower to 1.52%. The MBA mortgage applications change for the week ending January 17 came in at -1.2% versus 40.5% in the previous week while the Chicago Fed Activity Index for December missed by a whisker. On the other hand, Existing Home Sales for December beat the (MoM) expectation of 5.43M with 5.54M representing a change of 3.6% (MoM) versus 1.2% expected.

The initial and continuing jobless claims also came out strong beating the expectations of 215k and 1.746M claims with 211k and 1.731M, respectively.

Gold Price Technical Analysis (the 60-min Chart)

Technically, the price of gold appears to be trading in a consolidative sideways movement, which indicates a lack of momentum. The bulls and the bears are canceling each other out several times a day and this could continue through Friday.

Therefore, the bulls will be targeting short-term profits at around $1,570, %1,580 or higher at $1,592. On the other hand, the bears will look to pounce on [profits at around the 76.40% Fib level at $1,550 or lower at $1,540 and $1,530.

Gold Price Technical Analysis (the Daily Chart)

In the daily chart, the price of gold appears to have made a major pullback following a short spike. The yellow metal still remains under strong bullish pressure in the long-term after breaking out late last year.

Therefore, the bulls will be targeting long-term profits at around $1,591 or higher at $1,611. On the other hand, the bears will hope to swing the momentum in their favor in the coming days. They will target profits at around $1,538, $1,513 or lower at $1,483.

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