Gold prices are trading near flat this morning, while equities were mixed amid lingering recession fears. Equities and other risk assets have been struggling since last Friday after the spreads between US 3-month and 10-year Treasury yields inverted, which traditionally is sign of a potential recession. Traders are closely monitoring developments in Brexit and Sino-US trade talks, as they might increase the yellow metal's safe-haven appeal depending on the outcome.
Gold prices surged during Monday'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 during Tuesday's and today's session as the price couldn't hold above the 1316.78 resistance level. The momentum is still decreasing gradually and we are expecting a downward move as we will be focusing on the 1310.38 support level.
Support: 1314.16/ 1310.38
Resistance: 1316.78 / 1321.47