With the Chinese media repeatedly flashing worrisome signals concerning its trade spat with the US, Gold prices rallied towards the $1337 level during today's early session. Among the key headlines that triggered risk aversion are the accusations that the US distorts the market economy and comments from Wu Xiaoqiu, vice president of the Renmin University of China that portrays diminishing chances of the US-China trade deal. While Global Times was on the anti-US spree, comments from China’s State Administration of Foreign Exchange and Vice Premier Liu He praising the dragon nation added further strength into the buying as the Asian nation occupies top spot in the Gold customers’ list. Given the absence of major data, investors are more likely to concentrate on political events/developments for fresh clues.
On Tuesday, Gold prices edged down to reach the 38.2% Fib retracement before surging back up yesterday and today to continue its uptrend. The price is currently trading above the 1337 level and challenging yesterday’s highs with a bullish momentum. The yellow metal has more room to go before entering the overbought state reassuring the continuation of the upward move. The next level we will be watching is the $1343.09 resistance level.
Support: 1335.07 / 1331.48
Resistance: 1339.67 / 1343.09