Gold built further on the overnight strong up-move and surged to over a 1-month high, closer to the $1240 level during the Asian session on Tuesday. Against the backdrop of a temporary truce in the US-China trade conflict, a sharp decline in the US bond yields exerted some additional downward pressure on the US Dollar and underpinned demand for the dollar-denominated commodity. Meanwhile, a fresh wave of global risk-aversion trade, as seen in the equity markets provided an additional boost to the precious metal's safe-haven allure.
As expected, Gold prices pulled down and retested near support levels before firing back up to reach 1237.79 resistance level. The price is currently holding on the level with some difficulties breaking above it especially with overbought conditions being there. If prices were to continue surging, a consolidation needs to be formed that is why we will be focusing on the $1234 level.
Support: 1230.74 / 1228.26
Resistance: 1236 / 1237.8