Gold prices stepped up within a tight range during yesterday’s session, with the overall direction blurred by the performance of the greenback against other currencies. It holds a rather steady pace despite ongoing uncertainty induced by the unsettled trade dispute between the US and China, and the recent resignation of Ministers from the Cabinet following the Brexit deal. With investors’ attention on the US dollar, we can rely on US data and news events to drive momentum for the yellow metal.
While gold price appear to be losing momentum further validated by a falling ADX line, the uptrend remains intact. We should look to verify whether the price will move above the 50 Moving average and surpass the resistance level at 1216.72 to determine a direction for the yellow metal whilst it hovers and holds below the Ichimoku Cloud. If no decisive move is to be made, then the price should range above the support zone around 1212.24
Support: 1210.55/ 1207.22
Resistance: 1216.72 / 1219.22