Precious metals are taking a backseat as risk appetite returns while various geopolitical developments make for positive headlines this week. While markets wait for some form of clarity in the 'Phase-1 deal' between the US and China, Brexit developments have been highly positive for risk in markets during yesterday's session, weighing on the price of Gold. There has been news that the EU and UK were close to agreeing on a draft Brexit deal, a deal that could be signed and delivered as soon as today and in time for the EU summit. As for stocks, we are into earnings season again and investors appear to be positive about that which is also pressuring the appeal of safe havens. Meanwhile, for trade updates, there were headlines that included comments from a spokesman for China’s foreign ministry who was quoted as saying Washington and Beijing were “on the same page.”
Gold prices lost traction of the early upward move as they fail to break above the $1494.87 resistance level and slumped to a low of $1477.11 per ounce. The price is currently trading near yesterday’s lows with a negative momentum approaching the $1474.99 support level. We will be focusing on the downside and we will be watching closely the lower band of the pattern presented on the chart.
Support: 1474.99/ 1456.93
Resistance: 1486.98/ 1494.87