Having slumped more than 2% during yesterday’s session, Gold prices are taking a break near two-week low while trading around the $1518 level. The yellow metal had to bear the burden of renewed trade optimism on Thursday after Chinese authorities crossed the wires conveying the US-China trade talks in October. Investors rushed to riskier assets and propelled bond yields following the news as any such development was eagerly awaited since long. Adding to the bullion’s misery was upbeat ADP Employment Change data from the US indicating a strong print of today’s NFP report. Furthermore, Iran’s additional step back from Nuclear Deal and the US Treasury departments’ threats to anyone fueling the Iranian tanker also favors a rethink on traders’ risk preferences.
Gold prices dropped by more than 2% from weekly highs during yesterday’s session printing new weekly low at $1506.2 per ounce after failing to break above the $1556.25 resistance level. The price is currently trading around the $1318 level with a negative momentum. We will be focusing on the downside with our focus being on the critical $1502.02 support level.
Support: 1544.49 / 1533.63
Resistance: 1556.25 / 1564.3