Gold failed to capitalize on its uptick during yesterday’s session but is still firmly holding above the $1500 handle. The uptick lacked any strong follow-through and remained capped below last week's swing highs on the back of incoming positive trade-related headlines, which remained supportive of the risk-on flows and dented demand for traditional safe-haven assets. The global risk sentiment got a strong boost on Wednesday after Bloomberg reported that China was still open to a partial trade deal with the US. This was followed by reports this morning that the US is considering entering into a currency agreement with China as part of a partial trade deal. Meanwhile, a mildly weaker tone surrounding the US Dollar helped limit the downside, despite Wednesday's not so dovish FOMC minutes.
Gold prices rose to weekly highs during yesterday’s session to print a high of $1516.88 per ounce, but quickly retreated to settle above the $1506.02 support level. The price is currently trading just above it with the momentum slowing down but still bullish. We will be focusing on the upside if the price succeeds to stay above the $1506.02 support level and the next level we will be watching is the $1524.15 resistance level.
Support: 1506.02/ 1494.87
Resistance: 1515.75/ 1524.15