After Trump expressed his concerns about the Federal Reserve policy that could disrupt the economy in some unusual comments, the Dollar has been under huge pressure letting Gold rise again. However, it is not the Fed’s policy of gradually raising interest rates that threatens the economy, instead it is the risky trade policy that could offset his tax reform that he signed in 2017.
Gold broke the 1228.5 resistance level to the upside reaching $1235 per ounce. Now we are looking for a retest of the previous resistance level which could become a support to ease the overbought conditions and to witness continued surge in prices. The next level we will be focusing on is $1238 figure.
Support: 1217 1206
Resistance: 1226.50 1228.47