Gold prices edged up on Wednesday early in the session after US Federal Reserve Chairman Jerome Powell testified before the Senate overnight. Powell said in the first of a two-day Congressional address at the Senate Committee that the U.S. economic outlook was "generally favorable" but still faced challenges from abroad. Powell also added “While we view current economic conditions as healthy and the economic outlook as favorable, over the past few months we have seen some crosscurrents and conflicting signals”. On the other hand, President Donald Trump said this week that a trade deal “could happen fairly soon” if US and China could bride remaining differences, although it is possible that “it might not happen at all.”
Gold prices failed to hold above the $1330 level after numerous attempts and declined towards the $1326.2 support level. The price is still hovering around the $1327 level with a declining momentum as we can see on the RSI. We will be expecting a deeper correction to the downside and we will be focusing on the $1321.47 level.
Support: 1326.20 / 1321.47
Resistance: 1331.48 / 1334.91