Forex. Gold trading forecast and signal for today, April 27
Yesterday, the price of Gold rose to the resistance level of $1,780 per troy ounce.
The quotes are maintaining an upward momentum due to the recent weak yield on long-term US Treasury bonds, as the Fed sticks to the set course after updating economic forecasts at the March meeting. It is likely that the regulator will continue to buy securities for at least $80 billion a month. Fed Vice Chairman Richard Clarida noted that monetary policy will not tighten just because the unemployment rate has fallen below the econometric estimate of its long-term normal level.
Gold premiums, compared to official domestic prices in India, fell this week amid volatile demand. Rising prices and strict restrictions have negatively affected demand. The premium is down about two dollars an ounce this week, down from four dollars last week. According to Reuters, jewelers are reducing purchases due to weak retail demand, which may remain weak in the next few weeks amid an increase in the number of cases of the coronavirus. Overall, analysts remain positive about gold, saying that the influx of safe investments due to the pandemic, the likelihood of rising inflation and longer-term interest rate cuts may support the precious metal at lower levels.
Forex. Gold Trading Signal
In the forecast, Gold is expected to rise to the levels of 1785, 1790 and 1800 Dollars.