Gold witnessed some profit-taking earlier this morning and eroded a part of Monday's strong up-move to near one-month tops. The overnight uptick was supported by an inversion of the 3-month and 10-year Treasury yields for the first time since 2007, which sparked fears of a potential US recession and underpinned the precious metal's relative safe-haven demand. Meanwhile, a subdued US Dollar price action extended some support to the dollar-denominated commodity. This coupled with the ongoing Brexit drama and uncertainties over the US-China trade negotiations might further collaborate towards limiting any sharp corrective slide.
As expected, Gold prices surged during yesterday's session to print new one-month top at $1324.4 per ounce. However, the price could not hold above the $1321.47 resistance level and lost its momentum as the $1316.78 support level is currently being challenged. We expect the corrective move to extend and we will be focusing mainly on the $1310.38 support level before expecting any upward move.
Support: 1314.16/ 1310.38
Resistance: 1316.78 / 1321.47