Gold prices gained more than 1% on Friday following the news that Chinese and US trade talks were cut short while troubles in the Middle East continue to concern investors. Renewed geopolitical tension between Saudi Arabia and Yemen has been a major driving force for markets’ immediate risk sentiment off-late. Following a threat from Houthi rebels, Saudi Arabia has also flashed signals of war if an attack takes place whereas the US deployed additional forces in the Middle East as a measure being ‘defensive in nature’. Also favoring the risk-off could be the continuation of an easy monetary policy wave from the global central bankers amid a lack of positive headline statistics and on-going trade uncertainty.
As expected, Gold prices surged by more than 1% during Friday’s session after traveling towards the $1515.75 resistance level after gaining some momentum. The price is currently hovering around the $1515.75 as the momentum broke to the upside as we can see on the RSI chart pointing towards the continuation of the upward move. We will be focusing on the upside with the $1533.63 resistance level on our watch.
Support: 1506.02/ 1494.87
Resistance: 1515.75 / 1524.15