Although diminishing chances of the US-Iran war and positive news reports from the US and China compress the yellow metal’s gains, Gold prices could not trade lower than previous lows as they still holding above the $1272 level. Not only the US President Donald Trump’s readiness to talk to Iran but comments turning down the threat of war from the US Defense Secretary Patrick Shanahan also affected the safe-haven demand of the bullion. On the other hand, the US offered an intermediate relief to China’s Huawei after banning to trade earlier. That follows the latest comments from China’s ambassador to the US that the dragon nation stands ready to go on the trade negotiation table and import more goods and services from the US. Moving forward, minutes of the Federal Open Market Committee might act as a trigger from the economic calendar while developments surrounding the political plays mentioned could keep the precious metal markets lively.
Gold prices still trading in the same range despite yesterday's mini attempt to break to the downside before getting the right support from the $1271.85 support level. The price is currently hovering around the $1273.5 level but the interesting thing to watch is the divergence that has emerged between the momentum and the price as presented on the chart. Our focus will now be on the upside as we will be watching the $1280.11 resistance level for the next 48 hours.
Support: 1274.72 / 1271.85
Resistance: 1277.18 / 1280.11