Following the ECB decision and US CPI-led crazy Thursday, Gold prices stays on the back foot while taking rounds to $1498 during today’s early session. The yellow metal turned wild with the European Central Bank’s deposit rate cut and quantitative easing measures while upbeat prints of the US Core Consumer Price Index added fuel to the volatile session the previous day. However, markets shifted their attention back to the US-China goodwill gestures that have been limiting the safe-haven demand off-late. Among the baby-steps, delayed tariffs from the US, readiness to buy more of the US agricultural products by China, and upbeat statements from the US President Donald Trump and Treasury Secretary Steve Mnuchin gained major attention. Sellers might also have emphasized the US President Trump’s comments that he is considering North Korea and Iran’s proposal to talk, which in turn could recede the geopolitical tension.
Gold prices went on a crazy ride during yesterday’s session as they surged above the $1500 level printing a high of $1524.05 per ounce and then quickly retreating towards the $1499 level and settled there till now. The price is nearly moving at the moment as the momentum stabilizes in a neutral zone. We will be focusing on the downside if the price does not break above the $1506.02 resistance level. The level to watch will be the $1474.99 support level.
Support: 1494.87/ 1486.98
Resistance: 1506.02 / 1524.15