Gold prices are trading near flat today as a private survey showed China’s manufacturing activity rebounded unexpectedly. The yellow metal lost about 1.4% in March, marking its second consecutive monthly drop amid a stronger Dollar. On the US-China trade front, Chinese Vice Premier Liu He and his team are set for more trade talks in Washington later this week, as high-level officials, including U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer, traveled to Beijing last week. It was reported that negotiations could take “weeks, or even months” before a trade deal could be agreed upon between the two sides and unless two key geopolitical issues namely Brexit and trade war issues are permanently resolved, gold will always have a bias favoring upside price action from a fundamental perspective.
After returning to retest the 1300 resistance level, Gold prices fell again to continue with the downward move. The price is currently trading just above the 1288.63 support level with a bearish momentum as it re-approach the oversold zone. We will be focusing this time on the 1284.68 support level before witnessing any upward move on the back of a divergence between the price and the momentum.
Support: 1288.63/ 1284.68
Resistance: 1291.35 / 1293.78