The gold price has recently returned to the 1280 event area as it recovered quite well after the major sell-off and decline towards the 1270 area. Currently, gold is trading at the edge of 1280, nearly 1% above the new low of 2019 that it hit earlier this week. However, momentum remains limited, as a string of healthy earnings reports from the US keeps risk appetite well fed.
The positive economic reports on the greenback's side managed to sustain the bearish pressure below the 1280 area. Although, the upcoming Advance GDP report is expected to have the lowest value since April 2018 and may bring certain volatility. The recent recovery of the yellow metal is considered as the result of mixed economic reports from the United States. Any encouraging economic reports and events on the USD side are forecast to lead to an ongoing bearish pressure.
Technically, the price has formed a Bearish Divergence at the edge of 1280 recently. Therefore, the bearish trend is anticipated to continue. As far as the price remains below the 1300 area with a daily close, the bearish bias is expected to continue.
SUPPORT: 1200, 1235, 1250
RESISTANCE: 1280, 1300, 1325
BIAS: BEARISH
MOMENTUM: VOLATILE
