Tuesday, May 7, 2019

GOLD - 07 May 2019

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Fundamental Highlights

Gold is having a tough time building momentum above $1,280 for the second day despite Trump's tariff threat. Prices clocked a high of $1,285 on Monday but ended in $1,281 even though the global stock markets cratered on renewed fears of a full-blown US-China trade war. Trump tweeted Sunday that he would raise tariffs on $200 billion worth of Chinese goods from the current 10% to 25% on Friday and added further that he would "shortly" impose 25% tariffs on the $325 billion in Chinese goods. The recovery in US stocks and gold's inability to rally hard indicates the markets are still optimistic that the US and China will strike a trade deal.

Technical Analysis

Gold prices are having a hard time gathering the right momentum to break above near resistance levels after printing a high of $1285.73 per ounce on Monday. The price is currently trading just above the $1280.11 support level with a relatively bullish momentum as the RSI points out. The upside will remain in our focus and we expect the price to test the trend line represented on the chart in the next 48 hours. The main level to watch will be $1285.35 resistance level.

Support: 1280.11/ 1277.18
Resistance: 1282.19/ 1285.35

Chart (H4)
XAUUSD

 
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