With fewer catalysts to rely on, Gold prices trade around the $1500 level during today’s early session. The yellow metal benefited from the drone attack on Saudi Arabian oil facilities that destroyed the oil-rich nation’s 50% output. However, the gains were confined due to the US Dollar’s rally backed by recently positive sentiment surrounding the world’s largest economy. The US Depart of Justice recently arrested a Chinese government employee for alleged visa fraud. The same could negatively hurt the US-China relationships ahead of the October trade meeting. Both the economies have been undertaking goodwill gestures to ease trade-war concerns off-late. It should also be noted that investors await key monetary policy meeting decision from the US Federal Reserve, up for tomorrow, in order to determine near-term market moves.
Gold prices edged lower during yesterday’s session after printing a high of $1512.02 to retreat below the $1500 level during today’s early session as upward move eases. The price is currently trading just above the $1494.87 support level with the momentum being in a neutral zone. The yellow metal will most probably trade in a tight range around the $1500 level before adopting a bigger move in a clear direction.
Support: 1494.87/ 1486.98
Resistance: 1506.02 / 1524.15