After dropping $27.90, or 1.8%, on Wednesday, which was its biggest one-day decline since September 5th, Gold prices found support above the $1500 level despite a strong Dollar. The risk of impeachment against US President Donald Trump and continued geopolitical uncertainties are helping to support risk-off asset classes. The Democrats decided to launch an impeachment inquiry in response to reports that President Trump has withheld aid to Ukraine while he was pressing President Zelenskyy to investigate Democratic presidential candidate Joe Biden and his son. According to Pelosi ‘the actions taken by the President have seriously violated the Constitution.’ While it is highly unlikely that President Trump will be removed from office, it may not bode well for his election campaign. Meanwhile, on the risk positive side of things, Trump said later after signing a limited trade deal with Japanese Prime Minister Shinzo Abe there was a good chance of reaching an agreement with China.
Gold prices found support above the $1500 level after dropping nearly 2% on Wednesday but could not find the right traction to keep the pressure upwards. The price is currently hovering around the 1506.02 resistance level with a bearish momentum as we can see on the RSI chart. We will be focusing on the downside with the 1494.87 support level on our watch.
Support: 1506.02 / 1494.87
Resistance: 1515.75/ 1524.15