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· Gold edged lower on Thursday, but was trading close to a two-week peak scaled in the last session as dovish U.S. and European central banks fanned concerns on economic slowdown and kept global bond yields and the dollar under pressure.

Spot gold was down 0.2 percent at $1,304.99 per ounce as of 0733 GMT, after touching its highest since March 28 at $1,310.50 in the previous session.

U.S. gold futures were down about 0.4 percent at $1,309.30 an ounce.

· The dollar index was trading near a two-week low touched in the previous session after the U.S. Federal Reserve’s minutes cemented the central bank’s dovish policy stance amid risks of global economic slowdown.

· “Policymakers are continuing to hint that they are not in a rush to hike interest rates, particularly the U.S. Fed, and the ECB also did not change their monetary policy,” IG Markets analyst Kyle Rodda said.

“That has caused a decrease in bond yields across the globe and made gold much more attractive.”

“The yellow metal should see support toward $1,300 - $1,305, while a consolidated break through $1,310 should see further interest,” MKS traders said in a note.

· Market participants are also closely following the ongoing Sino-U.S. trade talks with broader expectations for a quick resolution to the year-long tit-for-tat tariff war between the world’s two largest economies. Washington and Beijing have largely agreed on a mechanism to police any trade agreement they reach, including establishing new “enforcement offices,” U.S. Treasury Secretary Steven Mnuchin said on Wednesday.

· GOLD TECHNICAL ANALYSIS

Gold prices are testing resistance in the 1303.70-09.12 area, a barrier marked by a chart inflection area and a falling trend line capping gains since late February. A daily close above sees the next upside barrier at 1326.30. More broadly, such move would hint at the completion of a bullish Triangle continuation pattern, setting the stage for longer-term recovery.

Alternatively, a turn lower from here that leads to a break of neckline support at 1283.53 would point to the completion of a Head and Shoulders (H&S) top. That would set the stage for a test of rising trend support established from August 2018 lows, now 1258.34. The H&S formation would imply a larger selloff to probe near the $1200/oz figure.

· Gold Price Outlook: XAU Reversal Targets Consolidation Resistance

Note that despite the volatility seen over the past few months, price largely remains within the confines of a broad consolidation since the start of the year with a breach above confluence resistance at 1313 needed to validate a larger turn in price targeting the 61.8% retracement at 1321. Daily support rests with the monthly open at 1292 with broader bullish invalidation now set to the highlighted confluence zone around the 100-day moving average at ~1285.

· Among other precious metals, spot platinum gained about 0.6 percent to $905.98 per ounce.

Palladium was down 0.2 percent at $1,385.05 per ounce, while silver inched 0.2 percent lower to $15.18.

Reference: Reuters, Daily FX