Gold holds on to recovery gains amid trade and political pessimism during yesterday’s session. The news concerning Saudi-led alliance’s military strikes in Yemen and challenges to the US-China trade optimism, as ascertained from US diplomats’ comments, seem to attract yellow metal buyers. It’s worth mentioning that pessimism surrounding Germany’s monthly report, the White House Adviser Peter Navarro's comments, in addition to ex-IMF Chief Christine Lagarde's comments, has kept investors' interest in the safe-haven instrument. Furthermore, China, once again halting US intervention in the Hong Kong issue, reignited fears of another trade war ahead of the key October meeting.
Gold prices found support once again by the crucial $1486.98 level as they climb back up above the $1500 level as of this morning. The price is currently trading just below the $1506.02 resistance level with the momentum picking up again and about to break above the trend line presented on the RSI chart. We will be focusing on the upside with the $1515.75 resistance level on our watch.
Support: 1494.87/ 1486.98
Resistance: 1506.02 / 1515.75