Gold has travelled between a low of $1494.96 to a high of $1509.40 on Friday, ending Wall Street around 0.50% in the red as the precious metal struggled to maintain the bullish momentum despite the DXY falling 0.20% on the day. Initially, gold found a bid on the White House's decision to hold off on granting licenses for US companies to purchase some Huawei equipment following Beijing's halting of US crop purchases. However, risk aversion spiked on reports to the contrary and that US won’t ease Huawei restrictions. Nevertheless, these two headlines are another reminder of the recently deteriorating outlook for US-Sino trade negotiations.
Gold prices took a breather during Friday’s session after failing to print new highs as the momentum drops. The price is still holding around the 1500 level but however the clear divergence between the price and the momentum my trigger a correction as a double top formation also emerges. We will be focusing on the downside for now, especially on the 1482.82 support level.
Support: 1456.93 / 1441.79
Resistance: 1474.99 / 1482.82