With the lack of fresh directives, Gold remains below the $1500 level during today’s early session. The yellow metal slipped during yesterday’s session as the US President Donald Trump’s rate cut demands were tamed by the Federal Reserve Bank of Boston’s President Eric Rosengren. Upbeat expectations surrounding the US-China trade deal, mainly due to the US favor for Huawei, also added to market’s recently risk recovery. With this, equities and bond yields recover latest losses while safe-havens like the Japanese Yen and Gold had to suffer. Recently, the US President has been offering incentives to China ahead of their September trade talks. Elsewhere, global central banks keep their dovish outlook intact but wait for this week’s Jackson Hole Symposium event to announce the same. Meanwhile, political tension surrounding the Middle East and the UK can keep offering intermediate trading opportunities amid a light economic calendar.
As expected, Gold prices edged lower during yesterday’s session to reach the $1494.36 support level after loosing momentum. The price bounced off this level and is now trading above it after failing to break to the downside. We will keep focusing on the downside as the previous divergence between the price and the momentum keeps showing its effect. The next level to watch will be the $1482.82 support level.
Support: 1506.02 / 1494.36
Resistance: 1520.64 / 1539.61