Gold prices have been recovered from yesterday’s lows, traveling as high as $1497 as of this morning as investors weigh the prospects of talks taking place between the US and China over trade. we have seen four consecutive sessions of declines with markets turning up the appetite for risk as traders return from summer holidays and a season of risk-off associated to trade wars and global growth diminishing. However, in recent sessions, the news that China is addressing sluggish growth and trade wars with stimulus measures has lifted spirits and word that Washington and Beijing are set to start up trade talks again, despite the recently imposed fresh tit for tat tariffs, has blown some of the speculative air out of precious metals of late.
Gold prices recovered from Tuesday’s lows of $1484.39 per ounce and went up as high as $1498.34 during yesterday’s session. The price is currently trading just below the 1494.36 resistance level with the momentum still in the bearish territory. We will be focusing further on the downside with the $1474.99 support level on our watch, however, traders should keep an eye on a potential divergence between the price and the momentum which could send the price back up.
Support: 1483.45/ 1474.99
Resistance: 1594.36 / 1506.02