Gold added to the previous session's losses and dropped to near one-week lows as of this morning as it failed to capitalize on last week's solid rebound from two-month lows and came under some renewed selling pressure on the first day of a new trading week. A goodish pickup in the US Treasury bond yields provided a modest lift to the US Dollar which eventually turned out to be one of the key factors exerting pressure on the dollar-denominated commodity. The downtick seemed unaffected by a mixed trading sentiment across global equity markets, weighed down by reports that Chinese officials were increasingly reluctant to agree to a broad trade deal pursued by the US President Donald Trump. White House economic adviser Larry Kudlow helped ease some anxiety, which further undermined the precious metal's safe-haven demand and collaborated to the weaker tone. The key focus will remain on the outcome from US-China trade negotiations in Washington starting this Thursday.
Gold prices fell to nearly one- week below the $1500 handle as it looses momentum and printing a low of $1487 per ounce as of this morning. The price is currently trading above the $1486.98 support level with the momentum retreating from the bulls territory as we can see on the RSI chart. We will be focusing on the downside and expect the price to respect near resistance levels. The next level to watch will be $1474.99 support level.
Support: 1486.98/ 1474.99
Resistance: 1494.87/ 1506.02