Gold caught a bid into the remaining hours of yesterday’s US session following the outcome of the Brexit voting as investors remained indecisive over trade and Brexit progress. The UK government was defeated on the timeline for the withdrawal agreement, opening prospects of an extension and a snap election. Boris Johnson will do his utmost to defend the 31st October date, but given the vote, he has very little choice but to ask for an extension which is positive for the safe havens such as Gold. Meanwhile, trade deal progress continues to gain traction, at least in the eyes of US President Donald Trump. Trump insists that there is a very high probability of a deal being signed as soon as next month as a meeting in Chile.
Gold prices are still trading in the same range since last week as bulls still trying to seek for a run towards the $1500 handle despite prices edged higher during yesterday’s session. The price is currently trading just above the $1486.98 resistance level level as the momentum is still in the neutral to bullish territory. We will be focusing on the upside if the price breaks above the $1494.87 resistance level with the upper band on our watch.
Support: 1486.98/ 1474.99
Resistance: 1494.87/ 1506.02