Following its gap-down opening to $1387.20 on US-China trade truce, Gold prices recover above the $1390 level as markets evaluate risk concerns amid mixed headlines from Chinese media during the early Asian session this morning. Even if a trade ceasefire between the world’s two largest economies garnered risk-on sentiment at the day’s start, recent headlines from China continues to question investor optimism over the likeliness of a trade deal. With the underlying issues concerning the technology transfers and intellectual property rights are still unresolved, negative comments from China’s press push global traders towards expecting another round of endless discussions between the two key economies.
Gold prices extended their pullback, reaching $1383.86 per ounce before retreating and settling above the $1392.8 support level as expected. The price is currently holding just above this level, however the momentum is bearish. If the momentum picks up some traction, we will be focusing on the upside again and we will be watching the $1410.78 resistance level.
Support: 1392.8 / 1382.76
Resistance: 1401.62 / 1410.78