With the US Dollar strength outshining political pessimism surrounding the US and the UK, Gold prices keep it low nearing $1460 as of this morning. The greenback has been benefiting from the safe-haven flows off-late while the Federal Reserve officials’ refrain from any downbeat comments makes the US central bank most hawkish among the global doves. Adding to the yellow metal’s weakness could be the lack of optimism surrounding India and China, two of the world’s biggest bullion consumers whereas receding geopolitical tensions concerning the Middle East might also have strengthened bears.Chinese markets are off for a week starting from today and hence trade-war headlines, which have been upbeat recently, could be fewer. As a result, key activity numbers from the Eurozone, the US, and the UK will be closely followed.
Gold prices took some beating during yesterday’s and today’s early session as the yellow lost completely momentum printing a low of $1462.09 per ounce as of this morning. The price is currently continuously printing new lows as it trades just above the $1460 level. However, the yellow metal is positioned in an extreme oversold condition and that is why we will be focusing on a recovery especially to near resistance level which is $1474.99 level.
Support: 1456.93/ 1441.79
Resistance: 1474.99/ 1486.98