The weakened US Dollar sent Gold higher for the second day after the Dollar Index fell to a low of 94.90 on escalating US-China trade tensions. Gold prices headed towards the $1200 level but failed to break above it as the greenback did recover some of its losses. On another note, a sharp rise in India's gold imports seems to have boosted bullish sentiment noting that India is the one of the biggest sources of demand for the yellow metal. The data released yesterday showed that India's gold imports more than doubled in August to hit their highest level in 15 months.
Gold gained some momentum but failed to break above the upper band for the moment. RSI is showing some strength in the momentum with no overbought conditions. Once the price surge again, it will most probably break above the $1200 level and retest the $1198 level before continuing its surge towards upper resistance levels.
Support: 1198.6 1197.75
Resistance: 1207.8 1214.15