Price of the safe-haven Gold fell during today's early session amid more positive developments in the Sino-US trade talks. US Treasury Secretary Steven Mnuchin said on Monday that Washington and Beijing might be “close to the final round” of their trade negotiations. Recent upbeat economic data also boosted risk sentiment. China reported better-than-expected credit and export figures last week while jobs data from the US showed the number of Americans filing applications for unemployment benefits dropped to a new low.
As expected, Gold prices continued to head downwards breaking and settling below the $1290 level. The momentum has dropped drastically as the price is currently trading around the 1285.39 support level. The yellow metal has still more room to go before entering the oversold zone, that is why we will be focusing on the $1280.11 support level.
Support: 1285.35/ 1282.19
Resistance: 1288.35 / 1291.35