The yellow metal managed to close with marginal gains at yesterday's session. For 2 sessions, the metal managed to close with mild gains after a strong decline on Tuesday. On a weekly basis, the metal lost 1.5% and managed to hold gains on a monthly basis. We expect big moves towards $1,230/$1,243 or $1,143.00 in June.
Mixed US data provided mild support to the gold bulls. In the week ended May 23, the figure for seasonally adjusted initial claims was 282,000, printing an increase of 7,000 from the previous week's revised level. Pending home sales rose in April for the fourth straight month and reached their highest level in nine years, according to the National Association of Realtors.
Today, traders eye the prelim GDP q/q. Ahead of the major event, the metal opened on a bullish note. The trading pattern at the level of $1,187 acts as the key level. The strong support is found between $1,180.00 and $1,178.00. Intraday resistance is seen at $1,190.00 and $1,192.00. The selling opportunity is seen below $1,183.00 at $1,180.00 and $1,177.00. The real selling ignites below $1,177.00 towards $1,172.00 and $1,170.00. The key support is found at $1,165.00. In case bears manage to break $1,165.00 in the next week or two, we expect $1,144.00. For bulls, buying opportunity is likely to arise above $1,192.00 with targets at $1,195.00, $1,197.50, and $1,200.00. Bulls are likely to regain strength above $1,204.50 towards $1,208.00,$1,211.00, and $1,214.00. We can observe positive divergence in the four-hour chart.