Gold prices seem to ignore the US-China trade war concerns, not to speak of Hong Kong protests and tension surrounding the Middle East, as it takes rounds around the $1525 level this morning. The yellow metal pulls back from multi-year highs as the USD seesaws around late-2017 highs. Markets shrug-off the US President Donald Trump’s repeated push to ease the monetary policy to the Federal Reserve amid not so dovish comments from the Fed policymakers. Adding to the US Dollar strength could be the latest downbeat comments from the European Central Bank officials. Coming back to the US-China trade scenario, the Trump administration doesn’t want to step back from its tariffs despite China stepping back from previous retaliation. Both the nations are scheduled to meet for trade negotiations during this month though no breakthrough is expected to roll out.
After failing to break above the stubborn $1544.49 resistance level last week, Gold prices retreated from the highs after the momentum became exhausted. The price is still trading well above the $1520 level and its currently hovering around the $1524.15 support level. With the divergence between the price and the momentum is showing its effect, we will be focusing on the downside with the critical $1506.02 support level on our watch.
Support: 1524.15 / 1506.02
Resistance: 1539.61 / 1556.25