The yellow metal rose to the highest levels since May 2018, as the renewed doubts over the US-China trade resolution amid charges against China’s Huawei further boosted the safe-haven bids for gold. On top of that, gold prices continue to derive support from the expectations of a dovish FOMC monetary statement, as markets worry that the Fed will pause its policy normalization sooner than expected.
As expected, Gold prices continued the upward movement to reach the $1312.38 level and went further to print the highest price for an ounce of gold since May 2018 at $1313.99. The RSI shows extreme overbought conditions so a technical correction is more likely to happen at this level. We will be focusing on near support levels before we expect another rally in prices and this time towards the $1316.78 level.
Support: 1303.07/ 1296.99
Resistance: 1307.09 / 1312.11