With traders cheering upbeat comments from the Fed’s Powell, Gold prices broke to the downside as they are headed towards the $1270 level during today's early session. The US Federal Reserve Chairman Jerome Powell turned the market sentiment in favor of the greenback with his positive comments on economic growth as he gave little importance to recent noise in inflation data. The yellow metal remained on a back-foot since the early-day as holidays in China and Japan offered less news to change the momentum while positive developments at Brexit and the US-China trade front also favored market’s risk-on mood.
Gold prices broke to the downside after two days of sideways trading as near support levels could not sustain anymore after the bears regained the upper hand. The price is currently trading just above the $1271 level with a bearish momentum that still has more room to go before entering the oversold zone. We will focus on key support levels as targets in particular the 2019 lows at the $1266 level.
Support: 1268.81/ 1265.9
Resistance: 1274.06/ 1277.18