Gold Daily Analysis – July 31, 2017

Gold prices trade steady on Monday morning as the US dollar is under pressure at fourteen-month low. The reason for gold’s bullish sentiment is that trader’s expect the Federal Reserve to keep rates low. In addition, tensions in North Korea weigh on markets.

According to the Bureau of Economic Analysis – U.S. GDP rose to 2.6% in the second quarter in line with expectations whereas first quarter GDP was revised down to 1.2%. The U.S GDP price index fell to 1%, below expectations.

As for Fed members that voted on Wednesday to keep the central bank’s benchmark rate unchanged, the slowdown in inflation remains a key issue.

Technical Outlook

Gold prices sustained above $1250 and hold above support at $1256. Finally, gold prices broke above resistance at $1270 and begin the next rally towards $1275-$1300. Another bullish signal is the moving averages cross as the Long term 100-day moving average crossed above the Short term 50-day moving average as seen in the chart.

As for today, gold prices next higher target is at $1275-$1283 and the support is at $1264.