Despite the global risk-off sentiment, Gold prices headed lower during yesterday's session and continue to do so this morning breaking again below the $1280 level. Trade disputes between the US and China have recently helped the USD as markets considered it the safe currency amid upbeat fundamentals. Global risk tone weighed heavy yesterday as the benchmark US 10-year treasury yield slipped to the lowest since September 2017. However, the absence of new negatives from the US and China triggered the risk barometer’s pullback recently to 2.266%. Moving on, the US first quarter gross domestic product data will be the key to watch in addition to observing the US-China news headlines. The GDP number is expected to soften to 3.1% from 3.2% on an annualized basis.
Once again, the yellow metal could not benefit from the bullish momentum and failed to break above the $1285.35 resistance level only to head down and settle just above the $1277.18 support level as of this morning. The price is currently receiving support from the 1277.17 level creating a tail below it which points toward an up-move. On this note, we will be watching the 1280.11 closely during today's session.
Support: 1277.18 / 1274.72
Resistance: 1280.11 / 1282.19