30-05-2018 10.40 AM
Gold prices hanged around the psychologically important $1,300 level as former losses on dollar strength were counterbalanced to some extent by rising safe-haven demand following a slight raise in geopolitical uncertainty.
Italy countenance the outlook of fresh elections, which could deliver a deeply Euro cynic government, frightening the future of Eurozone, after proposed prime minister Giuseppe Conte discarded his consent to form a government on May 27.
Investors feared fresh election could strengthen the country’s Euro cynic parties even further, frightening the country’s role in the European Union.
The Fed’s preferred measure of inflation currently sits at 1.9%, just shy of the U.S. central bank’s 2% target. But recent data including two regional manufacturing surveys has stoked expectations for an uptick in price pressures.
Gold prices recovered from a session low of $1292and the prices are currently holding at “Falling Wedge pattern”. Resistance line can be seen at $1300, which is the barrier as well as psychological prices sentiment. Today's trend will decide the factor if it breaks above $1305 then it would turn bullish towards $ 1315-1325, In the alternate scenario if it is unable to break above, then the selling pressure would continue to ream on the negative side towards $1290-1275 level.