Huge sell-off yesterday of the yellow metal safe haven as the risk on rally/ global sell off in bonds continues on talk of a phase one deal to include a tariff rollback. Chinese commerce minister spokesman, Gao Feng, said that Beijing and Washington have agreed to reduce some punitive tariffs on each other’s goods as talks on ending their trade war progress. This risk on sentiment was boosted by an ongoing strength in the U.S Labor market as Initial Jobless Claims figures released yesterday came in lower than expected (211k vs. 215k and a previous of 218k). Investors await the release of the Michigan Investor Sentiment today among other figures.
Biggest weekly loss for Gold in two years, closing at $1468 after opening at $1490.40. Prices broke out of the intraday upward parallel channel yesterday to bounce off our support level at 1461 as RSI shows deep oversold conditions allowing the yellow metal to retrace in today’s session with targets at our previous supports of $1474 and $1482. A breach of our support at $1461 will likely have the prices attempt S2 at $1440.64.
Support: 1461.09/ 1440.64
Resistance: 1474.34/ 1482.93 /1492.83