Gold Price Remains Under Bearish Pressure After US GDP

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Gold prices pulled back on Thursday to trade at $1,718 off session highs of $1,727 bringing to an end a 2-day rally amid increased bearish pressure. The price of the yellow metal had plunged earlier in the week to bottom at around $1,692 before embarking on the latest rebound.

The gold price is now pinned to the 100-hour SMA while the 200-hour SMA is a few pips higher. The price of gold continues to oscillate within a slightly ascending channel in the 60-min chart.

Gold Price Fundamentals Overview

From a fundamental perspective, the price of the yellow metal appears to have factored in all the uncertainty surrounding the adverse economic impact of COVID-19. The price of gold appears to be facing strong resistance since rallying to a new multi-year high of $1,765 last week. As more countries continue to relax economic lockdown measures amid COVID-19, optimism will return to the market. This is putting an added pressure to safe-haven investments like gold, which benefited from the coronavirus pandemic.

In the latest US economic data, preliminary Q1 GDP data beat the expectation of 1.4% with 1.6%. However, it came short of the expected annualized change of -4.8% with a change of -5%. The initial jobless claims for the week ended May 22, also missed the forecast claims of 2.1 million with 2.123 million claims. On the other hand, non-defense capital goods orders ex-aircraft for April impressed with a change -5.8% compared to an expected change of -10%.

Gold Price Technical Analysis (the 60-min Chart)

Technically, the gold price appears to be trading within a slightly ascending channel in the 60-min chart. The price of the yellow metal also appears pegged centrally in the 14-hour RSI. This indicates a slight short-term bullish bias in the market sentiment.

The bulls will look to retain control of the gold price by targeting short-term profits at around $1,743 or higher at $1,765. On the other hand, the bears will look to pounce for profits at around $1,692 or lower at $1,669.

Gold Price Technical Analysis (the Daily Chart)

In the daily chart, the price of gold appears to be pinned within a sharply rising channel. This indicates a long-term bullish bias in the market sentiment. The price of the yellow metal is trading several levels above the 100-day and the 200-day SMA lines.

The bears will target extended pullback profits at around $1,647 or lower at $1,577. On the other hand, the bulls will look to retain long-term control by targeting profits at around $1,799 or higher at $1,849.

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