Gold prices lost traction during yesterday’s session breaking below the $1500 handle as the latest headlines surrounding the US-China trade dispute and Wall Street's strong performance made it difficult for safe-haven assets find demand. After posting gains for the third straight week, the 10-year US Treasury bond yield rose sharply on Monday adding more than 3% to confirm the upbeat market sentiment. US President Donald Trump said that they were expecting to finalize phase one of the trade deal with China at the APEC summit in Chile, boosting the risk appetite. On the other hand, the US Dollar Index has gone into a consolidation stage after closing the previous week higher and is likely to stay quiet until Wednesday's economic growth data and the Federal Reserve's monetary policy decisions.
Gold prices surged to their highest level in a month on Friday reaching a high of $1517.82 per ounce just before retreating back to the $1500 handle and lost traction during yesterday’s session, breaking below it. The price is currently consolidating just below the $1494.87 resistance level while retesting the upper band presented on the chart. If the price succeeds to hold firm above it, we will be focusing on the upside again, especially the $1506.02 resistance level.
Support: 1486.98/ 1474.99
Resistance: 1494.87/ 1506.02