Forex. Gold trading forecast and signals for today, April 21
On Tuesday, Gold prices rose slightly, remaining below the seven-week peak reached in the previous session. Quotes strengthened to the level of $1,778 per ounce, which was facilitated by the pullback in US treasury bond yields and the weakening of USD.
Further forecasts for Gold traditionally remain mostly positive, as there is too much excess liquidity in the market, which will remain for a long time, even despite signs of economic recovery in some regions.
Gold, which is also considered a hedge against inflation, has fallen more than 6% this year as high US treasury yields have reduced the attractiveness of the asset, which does not pay direct dividends. From a technical point of view, Gold's inability to overcome the $1,785 resistance could bring it back to the $1,725-1,750 per ounce range.
Fed officials continue to assure market participants that the US economy is still far from making significant progress in achieving the regulator's goals, after which the Fed will begin to consider the possibility of reducing support. The head of the Philadelphia Fed, Patrick Harper, believes it is unlikely that inflation will get out of control this year while the US economy recovers from the crisis. If this happens, the Fed has the tools to deal with the situation. The management of the regulator intends to monitor the rate of change in inflation, and not just its level.
Gold Trading Signals
The forecast assumes further strengthening of the gold price to the resistance levels of 1780, 1785 and 1790 USD per ounce.