Surprise GDP Results Could Trigger Gold Run

However, the U.S GDP numbers which will be released soon will ignite the broad markets including Gold if there are surprising results.

No Tranquility in Gold Markets Today

The last week of trading in the Gold market has been anything but tranquil. The precious metal has been under pressure since yesterday and is near 1340.00 U.S Dollars an ounce. But this level is sure to be tested today and tomorrow.

Broad market sentiment remains fragile and the U.S Dollar finds itself in a precarious position as it continues to be tested in forex. U.S Gross Domestic Product data which will be released shortly will also ignite volatility across the boards if there is a surprising result.

U.S Growth Numbers a Key for Gold

A long-term chart of Gold clearly shows it has failed three different times to break resistance near 1355.00 U.S Dollars. And critical support remains intact near the 1313.00 mark.

Gold is nearly certain to trade inversely compared to the U.S Dollar these next two days. If the U.S growth numbers are weaker than expected from the States it could help the precious metal.

In the short term, we believe the Gold could be positive. The mid-term and Long term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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