With stimulating geopolitical factors in play, attention is drawn on the proceedings of the approved Brexit agreement as it lifts the Euro and Sterling, and in turn weakening the greenback which influences gold. Considering strong US fundamentals and a hawkish Fed, a recovery on the dollar’s recent dip could undermine the appeal on gold.
On the 1H chart, after a consolidating period for the yellow metal during a minor downtrend, a surge in price has put it on a seeming uptrend with a strong ADX reading above 35 and Moving average crossover indicating a shift in price movement. Should the bullish momentum hold, the price should move past the zone between 1212.52 and 1215.51 to meet resistance at 1221.35. A move below 1207.07 could drive gold to lower support levels.
Support: 1207.07/ 1201.26
Resistance: 1215.54 / 1221.35