Gold prices are nearing year’s high as a recent tussle between the US and Iran over 2 oil tankers’ blast in the Gulf of Oman turns serious. Adding to this, the US Federal Reserve is expected to keep rates unchanged at its meeting on June 19, but markets believe the likelihood of a rate cut before the end of the year has increased due to slowing inflation and rising trade tensions, which is supporting also the yellow metal’s price surging. Traders might be interested in the upcoming China data dump and the US retail sales during the later part of the day to determine near-term trade direction.
Gold prices are surging this morning and seems to be testing the yearly highs at $1348.13 per ounce. The price is currently trading just above the $1347 level with a bullish momentum and ready to penetrate the overbought zone. However the price has more room to go up and the upside is almost certain. We will be focusing on the $1353.40 resistance level.
Support: 1343.09 / 1339.67
Resistance: 1350.68 / 1353.4