Gold prices have shot higher by over 1% in the open this week due to the increased tensions in the Middle East following the attack on Saudi Arabia’s oil and gas facilities in Abqaiq which has suspended half of the kingdom’s processing, corresponding to 6% of world supply. However, while the news alone is a blow for risk appetite gold was already poised to the upside considering the underlying global economic weakness, dovish central banks and shortages of safe-haven assets which still suggests the path of least resistance for gold is higher.
Gold prices edged lower during Friday’s session before firing back up this morning by over than 1% as they are trading above the $1500 level. The price is currently trading around the $1510 level with the momentum picking up again.We can notice on the RSI chart that the momentum is about to break to the upside and this is why we will be focusing on the upside with the $1524.15 resistance level.
Support: 1506.02/ 1494.87
Resistance: 1524.15 / 1533.63