Despite yesterday's mixed headlines surrounding the US-China trade dispute, major equity indexes in the US started the day modestly higher and the 10-year US Treasury bond yield pulled away from the multi-year lows that it touched earlier in yesterday's session. Although the market action yesterday wasn't strong enough to suggest a shift in the risk sentiment, traditional safe-haven Gold struggled to preserve its bullish momentum. The Chinese finance ministry voiced its commitment to counter the additional 10% US tariffs on some Chinese imports that are scheduled to go into effect on September 1 and noted that the US decision violated the consensus reached between President Xi and President Trump at the G20 summit back in late June. However, in a separate statement later in the day, “We hope the US will meet China halfway, and implement the consensus of the two heads of the two countries in Osaka,” China’s foreign ministry spokeswoman, Hua Chunying, said to show China's willingness to make a deal. Meanwhile, data from the US showed that retail sales in July increased by 0.7% on a monthly basis in July to come in better than the market expectation of 0.3% and helped the Greenback gather strength.
As expected, Gold prices edged lower during the first half of yesterday’s session before regathering strength and pulling back up to the highs. The price is currently trading above the $1520.64 support level as the yellow metal seems to settle above it. The momentum is picking up again and we will be focusing on the upside with the $1539.61 resistance level on our watch.
Support: 1506.02 / 1482.82
Resistance: 1520.64 / 1539.61