Tuesday, April 2, 2019

GOLD - 02 April 2019

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Fundamental Highlights

Gold prices slipped during today's early session after data suggested China's manufacturing sector was recovering from a sharp slowdown earlier in the year. Global equities traded higher on Monday following the release of the survey, with Chinese stocks surging more than 2.5%. The safe-haven gold, however, moved in the direction opposite to most commodities as investor sentiment picked up. On the other hand, the UK Parliament rejected all the options to replace Prime Minister Theresa May’s unpopular deal, and for what it concerns the Sino-US trade front, Chinese Vice Premier Liu He is due to travel to Washington later this week for more trade discussions.

Technical Analysis

After returning to retest the $1300 resistance level, Gold prices fell again by $10 to continue with the downward move. The price is currently trading just below the $1288 level with a bearish momentum as it re-approach the oversold zone. We will be focusing this time on the $1282.19 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

Chart (H4)