Gold prices rose on Friday in Asia prior to the highly anticipated trade talks between the US and China on Saturday, with an outcome unpredictable to many. The yellow metal had a setback the day earlier as the US sent mixed signals about the trade deal ahead of the two-day G-20 summit, which kicked off today in Osaka, Japan. Media reports suggested that the U.S. was willing to delay the next round of tariffs on $300 billion in Chinese goods, but US President Donald Trump threatened more US tariffs if no progress in trade talks is made this weekend. Trump is set to meet his Chinese counterpart Xi Jinping on Saturday as Gold traders are looking to see if the two can strike a trade deal finally. CNBC reported that China wants a “balanced” trade deal, but US Trade Representative Robert Lighthizer told Chinese Premier Liu He in a phone call that balance will not happen.
After getting a strong support from the $1400 level during yesterday’s session, Gold prices regained traction and rose towards the $1422.59 resistance level this morning with an attempt to continue its uptrend. The price is currently trading just above the $1410.78 support level with the RSI pointing towards slowing momentum. We will be focusing on the continuation of the pullback and we will be watching the $1392.8 support level.
Support: 1410.78 / 1401.62
Resistance: 1422.59 / 1436