Gold is back up to retest and break its recent highs despite the US equities setting a firmer tone on Friday. However, geopolitical tensions just rose to a new level. Investors will stay focused on US rates, the Dollar, and the the stock market as they attempt to assess elevated tensions regarding global trade relations and geopolitical risks. Today's US retail sales will be crucial for the yellow metal's next move, but we have to keep in mind that Gold is behaving as a safe haven instrument at the moment so the bias is still mainly bullish on the short term but that doesn't preclude a moderate correction in prices.
As expected, Gold prices retreated a bit during Friday's session forming a consolidation above the $1216 level before surging during today's session to our closely watched $1228.3 resistance level. However, a huge divergence between the price and momentum occurred with the RSI suggesting overbought conditions. This may lead Gold to retreat back to the $1214.5 support level.
Support: 1180.6 1177.69
Resistance: 1184.86 1188.8