Bullish Breakout in Gold - Potential Target 1,722! 

Gold prices were closed at 1702.04 after placing a high of 1710.96 and a low of 1693.74. Overall the movement of gold remained slightly bullish throughout the day. Gold prices rose and returned to the level of 1700 on Tuesday amid the fall of US CPI in April; however, it remained range-bound as the market ignored the CPI results in later sessions. 

At 15:00 GMT, the NFIB Small Business Index for April exceeded the expectations of 86.7 and came in as 90.9 and supported the US dollar. At 17:30 GMT, the CPI for April was declined by 0.8% against the forecasted decline by 0.7% and weighed onus dollar. The closely watched Core CPI also declined in April to -0.4% against the forecasted -0.2% and weighed on the US dollar.

At 23:00 GMT, the Federal Budget Balance from the US showed a deficit of -737.9B against the forecasted -729.7BB and supported the US dollar.

Another reason for the Gold surge was the renewed call for negative interest rates by Trump on Tuesday. In his tweet, Donald Trump said that the US should accept the gift of negative interest rates. He renewed his calls for the Federal Reserve to push rates further down.

Federal Reserve lowered its rates near zero to reduce the economic destruction caused by the coronavirus pandemic. Bank has said that it would use other tools to aid US markets and the economy instead of reducing rates to negative territory.

XAUSD - Daily Technical Levels

Support     Resistance 

1,694.64      1,717.84

1,682.47      1,728.87

1,671.44      1,741.04

Pivot Point 1,705.67

Gold was range-bound in between 1,710 - 1,699 level until the release of Fed Chair Powel's speech. Since the speech, the gold is showing dramatic bullish move, having crossed over 1,710 levels, which may lead the gold prices towards 1,722. The RSI has crossed over 50, suggesting chances of further bullish bias in gold. While the 50 EMA is also supporting the buying trend. The recent close of 120 minutes candle is signaling bullish bias in gold. Let's consider taking buying trades in gold over 1,710 level today. Good luck!