Gold prices continued to draw back during yesterday and today's early session as recent economic data pointed to an improved economic growth outlook and put pressure on the safe-haven metal. The yellow metal has so far lost more than 1% this week, and is on track for a fourth straight weekly decline. China’s economy expanded more than expected in the first quarter of 2019, official data showed on Wednesday, while industrial output and retail sales for March were also better than expected. Trader's focus will switch to the release of Purchasing Managers Indexes for the manufacturing and service sectors in Europe later in the day.
Gold prices dropped to a new 3.5 months lows and on their way towards the $1270 level during today's early session as they broke all near terms support levels. The price is currently trading just below the $1271.5 with a bearish momentum as we enter again the oversold zone. We expect more bear pressure in this area as more stop orders are being triggered and our focus will be on the $1265.42 support level.
Support: 1277.18/ 1270.1
Resistance: 1280.11/ 1282.19