Thursday, June 6, 2019

GOLD - 06 June 2019

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Fundamental Highlights

Although initially negative headlines from the US-Mexico talks propelled the risk-safety earlier this morning, trade positive comments later on restored investor confidence and dragged Gold prices down towards the $1330 level. The yellow metal then rose after the news broke that the White House talks between the US and Mexican leaders failed to offer any solution to avoid fresh tariffs on Mexico’s products reaching the US. Moreover, International Monetary Fund’s Managing Director Christine Lagarde said that while she will be pushing global leaders to not harm the latest recovery with tariff war during upcoming G20, she doesn’t see the threat of global recession. With little data on hand, investors may keep following global political plays in order to determine near-term trade direction.

Technical Analysis

After retreating towards the $1330 level during yesterday's session, Gold prices are taking the bids this morning around the $1333 level as the momentum is picking up again. The price is currently trading above the $1331.48 support level as the RSI points towards the continuation of the upward move after retreating from the overbought state. The next level we will be watching is the $1339.67 resistance level.

Support: 1331.48 / 1326.20
Resistance: 1335.07 / 1339.67

Chart (H4)
XAUUSD