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Gold awaits fresh market-moving catalyst

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NEW YORK (Scrap Register): Gold needs a fresh catalyst, said Lukman Otunuga, research analyst at FXTM. Otherwise, the yellow metal remains in a range, with $1,300 acting as a psychological pivotal point.

Price action continues to suggest that gold needs a fresh directional catalyst to make its next significant move, Otunuga added.

A U.S. interest-rate increase in June, coupled with expectations of further rate hikes during the second half of the year, could spell trouble for zero-yielding gold.

Technically, market participants will continue observing how gold fares around the $1,300 level, the analyst continued.

“A breakout above $1,300 could trigger an incline towards $1,324,” Otunuga said. “Alternatively, a failure for bulls to conquer $1,300 is likely to result in a decline back to $1,280.”

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