
Gold fell hard after yesterday’s strong GDP data. Both the GDP price index and consumption also increased above expectations. After the fall, the price stabilized at the 1-month-long trend, and it is trying to make a comeback.
The zone between the 200-hour moving average and %23.6 of the trend channel (1799-1804) is the major resistance level ahead of today’s busy schedule. If gold can break above, 1819 could be the next target.
The rising real yields however could increase the bearish pressure on gold. A downside break of the trend channel could lead to big selloffs. Bullish traders should watch today’s PCE data and the University of Michigan’s inflation expectation data along with the trend channel’s lower line.