Gold prices have relatively risen at the start of the week with plenty of uncertainty bounding its way around on the geopolitical front, including Hong Kong protests, Brexit and US/Sino trade wars. With respect to Hong Kong, weekend violence and clashes between the protesters and police have raised concerns on an international humanitarian front which could become a factor in the stand-off between Washington and Beijing at a time where recent escalations have already lead to a breakdown in talks. It has been reported in recent trade that neither side has been able to agree on the timings of the next round of negotiations. Meanwhile, Brexit is back to the fore this week with Parliament returning from summer recess. Uncertainties here are stemming from rebel MP's in the conservative party wanting to block a no-deal Brexit.
Elsewhere, we will be back to central bank policies this month with a number of meetings where central bankers will decide on global interest rates.
Gold prices edged slightly higher during yesterday’s session but remained caged in a tight range above the $1520 level as the US market was closed. The price is currently trading above the critical $1524.15 support level as bulls continue to hold it. The momentum has settled in a neutral zone as we can see on the RSI chart. Given all that, we expect a big move in the coming days and we will be focusing on the upside especially on the $1544.49 resistance level.
Support: 1524.15 / 1506.02
Resistance: 1539.61 / 1556.25