The XAU/USD pair slumped to a daily low near $1284 during Friday's session but then erased the losses after the 10-year T-bond yield turned negative on the day, offsetting the strong NFP data from the US to ramp up the demand for the precious metal as a safe haven. Moreover today, during the Asian trading session, Gold prices are edging higher despite reports that Washington and Beijing have resolved most of the issues in their long-running trade dispute. The two sides were reportedly still haggling over how to implement and enforce a trade agreement. Chinese official broadcast CCTV said there was “new progress” in trade talks that ended last Friday in Washington and Trump’s top economic adviser, Larry Kudlow, told CBS on Sunday that the two sides are “closer and closer” to a trade deal.
As expected, Gold prices are surged back up towards the $1297 resistance level after breaking above the stubborn $1293.78 level. The price is currently also breaking above the level and is heading to the $1300 level with a very bullish momentum. We will be focusing on the $1303.07 resistance level.
Support: 1291.35/ 1288.63
Resistance: 1293.78 / 1303.07