Gold prices were sharply lower during yesterday’s session on the back of a rally of the US Dollar across the board. The Greenback is higher despite political jitters in Washington. US President Trump released yesterday the transcript from his conversation with Ukrainian President. He also mentioned that a deal with China could come sooner than “what you think”. US data may have also contributed to the strength seen in the US Dollar as New Home Sales jumped in August. Another key factor behind this pressure on metals are higher US yields.
Gold prices tumbled during yesterday’s session towards the $1500 level after trading near multi-week highs above the $1535 level. The price is currently hovering around the $1510 level with the momentum dropping to the bearish territory as we can see on the RSI chart. We will be focusing on the downside but first we expect a recovery after the sharp drop towards the near support levels before we expect a break below the $1500 level.
Support: 1506.02 / 1494.87
Resistance: 1515.75/ 1524.15