Gold prices stayed below the $1500 level on the back of an informal confirmation from Trump, speaking at a campaign rally, boasting how well trade talks are going with China. Risk has rallied yet Gold is at a standstill ahead of highly anticipated high-level trade talks later today in Washington when Trump and Vice Premier Lui finally meet. While the US Consumer Price Index disappointed overnight, the focus was elsewhere with geopolitical events. Moreover, Bloomberg reported that the White House could put in place a currency pact and suspend tariff increases that are set to take effect Oct. 15. Coupled with the positive turn-up in trade talks, Brexit headlines were equally positive.
Gold prices failed to build up the right traction to rally above the upper band presented on the chart, an instead took a step back retreating below the $1500 handle. The price is currently trading above the $1494.87 support level as the momentum rebounded towards the neutral territory. We will be focusing on the upside especially on the $1506.02 resistance level and the upper band.
Support: 1506.02/ 1494.87
Resistance: 1515.75/ 1524.15