With the US and China near the end of the two-year-old trade tussle, Gold bears gave little importance to doubts over a soft Brexit and tensions surrounding Syria during today’s early session. The yellow metal recently witnessed downside pressure after the United States and Chinese diplomats agreed over the first part of the trade deal on late-Thursday. The agreement propelled bond yields and equities to multi-week highs while cutting down on safe-haven demand. It should also be noted that the recent weakness in the US Dollar also fails to restore confidence of the precious metal buyers.
Gold prices failed to build up the right traction to rally above the upper band presented on the chart during last week, and instead retreated below the $1500 level printing as low as $1473.90. The price is currently trading just above the $1486.98 support level with the momentum slightly sliding into neutral territories. We will be focusing on a consolidation in this area with a retest of the $1494.87 resistance level as a most likely scenario.
Support: 1506.02/ 1494.87
Resistance: 1515.75/ 1524.15