The XAU/USD pair spent a large portion of yesterday’s session moving sideways near the $1490 handle before gaining traction during the American trading hours boosted by the risk-off flows and moved above the $1500 level. On Thursday, British Prime Minister Boris Johnson said that he will be calling for a general election on December 12. On the other hand, EU27 leaders will be announcing their decision on the UK's request for an extension today and resurfacing fears that a short extension would trigger a no-deal Brexit seems to be forcing investors to fell to safe-haven assets such as the precious metal. On the other hand, the heavy selling pressure surrounding the GBP/USD pair is helping the Greenback find demand capping Gold's gains.
Gold prices finally broke above the $1500 handle after bulls succeeded to violate the upper band to the upside as they found traction to pick up momentum. The price is currently trading just below the $1506.02 resistance level with the momentum being extremely bullish. We will keep focusing on the upside, especially on the $1515.75 resistance level. However traders should be careful from not-so-far overbought conditions.
Support: 1494.87/ 1486.98
Resistance: 1506.02/ 1515.75