Gold refrains from carrying its previous weakness amid lack of fresh catalysts even as the US-China trade stalemate continues while taking the rounds just above the $1400 level during today’s early session. Recently easy money signals from global central bank leaders pushed investors off to equities in search of higher returns, resulting in a negative daily closing for the yellow metal. While the US President Donald Trump accused China of not following G20 promises, the Chinese media criticized the US diplomats of being envious. Elsewhere, Reuters report that the US refrained from blacklisting Iranian Foreign Minister eased some pressure off the US-Iran geopolitical tension. Moving on, the US PPI and comments from the US Federal Reserve Bank of Chicago President Charles Evans will gain immediate market attention for fresh clues.
Gold erased more than half of Wednesday’s gains during today’s early session by retreating towards the $1400 level after an overextended upward move. The price is currently hovering between the $1401.62 support level and the $1410.78 resistance level as the yellow metal looses momentum gradually. A settlement below the $1400 level will suggest a possible over extension for the prices, however, our main level to watch will be the $1392.80 support level before deciding the next direction.
Support: 1401.62 / 1392.8
Resistance: 1410.78 / 1422.59