Gold nears key bullish turning point
Gold looks poised to reach a bullish turning point after its rally in the past 24 hours as U.S. political risk rises, analysts say.
The precious metal is now closing in on a bullish cross of the moving averages after appearing to find some key support at the $1,214.09 an ounce mark.
The 50-day and 100-day moving averages are converging at the same spot suggesting the market is poised for a break higher.
The RSI Oscillator is also now out of oversold territory and is now trending higher with plenty of upside.
These technical factors suggest the metal is about to break above the 100-day moving average and begin a rally toward an interim target of $1,263.48 an ounce.
Fundamentals are also supporting gold with some signs of weakness in the U.S. economy after relatively flat building permits and housing starts data.
U.S. first-quarter GDP growth was also relatively disappointing as consumer sentiment shows some signs of sliding while inflation is still mostly absent.
There is a case, therefore, for the Federal Reserve to possibly hold off on any further rate hikes until second-quarter GDP figures are out.