Despite the broad-based USD strength on Friday, the XAU/USD pair rose to a daily high near the $1314 handle. After the Fed's dot plot showed that the FOMC was expecting no rate hikes in 2019, the US 10-year T-bond yield recorded sharp losses and extended its slide on Friday to touch its lowest level since 2017 at 2.471% by losing nearly 2.5% on a daily basis which attracted traders to shift to safe havens. On the other hand, the greenback continues to outperform with its European major rivals struggling to find demand amid disappointing macroeconomic data releases from the euro area and the Brexit uncertainty, keeping the yellow metal gains capped.
Gold prices slightly edged higher during Friday's session to reach a daily high of $1314.83 per ounce. The price is currently hovering between the $1314.16 resistance level and the $1310.38 support level but seems to be well supported above the $1310 level. The momentum is slightly decreasing but still bullish and we expect the upward movement to continue. The $1321.47 level will be the level that we will be watching.
Support: 1310.38 / 1307.09
Resistance:1314.16 / 1316.78