Gold prices trade slightly higher on Tuesday morning, followed by the comments from a FED official, James Bullard.
Following the fall on Friday, Gold continue its losses on Monday after the better than expected nonfarm payrolls that increased chances for further rate hikes. St. Louis Fed President James Bullard said in his statement – low interest rates are “likely to remain appropriate” over the near term.
The producer price index (PPI) and the consumer price index (CPI) will be released on Thursday and Friday respectively.
Technical Outlook
Short Term Technical Analysis
The 4H chart has formed a ”Descending Triangle”, signals that the bearish sentiment continues. A break below the horizontal support line at $1258 could lead to $1250-$1246. Meanwhile, closing the gap between slope lines at $1266 can be expected. It would be a seller market and the rally could continue towards $1246 level.
Long Term View
Gold prices closed near the support which is a 50 Day moving average as well as the cross point over 100 day moving average. This indicates a bullish momentum.
Additional support could be seen at 100 day moving average at $1251. A break below support will enable the downside trend towards $1240.