Gold has rallied for six consecutive days since March 15, saw its longest bullish streak since January, after testing the significant support zone between 1195 – 1200 in mid-March.
Market concerns, over President Trump’s policies and the French presidential election, are resulting in Investors turning to safe havens. The weakening of USD has also pushed gold prices up.
Spot gold hit a 3-week high of 1251.20. The bulls tested a significant resistance level at 1250 on Wednesday evening, however, the price retraced.
The price zone between 1250 – 1260 is the short–term major resistance zone, where the selling pressure is heavy. The gold bulls are likely to struggle at this zone.
The daily Stochastic Oscillator reading is around 90, suggesting a retracement.
The resistance level is at 1248, followed by 1250 and 1253.50.
The support line is at 1245, followed by 1243 and 1240.50.
Fed Chair Yellen is scheduled to make a speech at 12:45 GMT today, Thursday March 23rd, at the Community Development Research, which is the major focus amongst this week’s Fed speeches.
Minneapolis Fed President Neel Kashkari (a FOMC voting member) will make a speech at 16:30 GMT followed by Dallas Fed President Robert Kaplan (a FOMC voting member) at 23:00 GMT.
Today will see the release of US initial jobless claims (for the week ending March 10) at 12:30 GMT, followed by US new home sales for February at 14:00 GMT.
The Fed speeches and the US economic data will likely affect the strength of USD, USD crosses and gold prices.