Friday, April 5, 2019

GOLD - 05 April 2019


undamental Highlights

After dropping to its lowest level since early March at $1280 and coming in within a touching distance of its 2019 low of $1276, the XAU/USD pair staged a decisive rebound towards the $1290 level. During yesterday's session, the 10-year T-bond yield rose into the positive territory and Wall Street started the day higher to point to a strong risk appetite which weighed on the safe-haven precious metal and dragged the pair lower. However, with the 10-year T-bond yield changing its direction in the last hour amid mixed headlines surrounding the US - China trade conflict, the pair pulled away from its lows. Although President Trump reiterated that trade talks with China were moving along nicely, he added that it was a complex deal covering issues surrounding IP and technology and they would not do it if it were not "great." Traders will now focus on the US employment report which is expected to print lower.

Technical Analysis

Gold prices fell to its lowest level since last month in the first half of the day yesterday but quickly eliminated all the losses in a sideways move that appears to be capped by the $1290 level. The price is currently hovering around the $1288 level with the momentum slightly edging higher. The direction is still not clear but we will be focusing on the upside especially the $1300 level if the price manages to break above near resistance levels.

Support: 1291.35/ 1288.63
Resistance: 1293.78 / 1303.07

Chart (H4)