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.”