Pre-established risk-off moves gained additional support from downbeat comments by the Bank of Japan Governor Haruhiko Kuroda and sluggish housing data from Australia and China during early Tuesday. Moreover, there seem to be fewer chances of a US-China trade deal at the upcoming G20 in addition to the increasing tussle between the US and Iran is also carrying the risk-aversion forward as the day starts. The US added 1,000 troops to its Middle East forces amid expectations of Iran taking steps to retaliate against recent allegation over Oman attacks. Moving on, comments from the global policymakers at the European Central Bank’s Forum in Sintra will be closely analyzed for fresh impulse ahead of tomorrow’s FOMC.
Gold prices is on the rise this morning and back above the $1245 level after receiving and big support from the $1335 support level during yesterday’s session. The price is currently hovering around the $1346.5 level with a bullish momentum who has more room to go before entering the overbought state. We will keep focusing on the upside before a divergence between the price and the momentum triggers a correction for the prices. We will be watching the 1353.4 resistance level.
Support: 1343.09 / 1339.67
Resistance: 1350.68 / 1353.4