Monday, May 6, 2019

GOLD - 06 May 2019


Fundamental Highlights

Gold has pulled back from the session high of $1285 but is still flashing green amid risk aversion in today's early session after regaining strong momentum on Friday. The yellow metal is likely benefiting from the drop in riskier assets triggered by the renewed fears of US-China trade war. The US President Trump said Sunday that tariffs on $200 billion worth of Chinese goods will be increased to 25% from the current 10%, as trade talks are progressing very slowly. In response, Beijing has reportedly called off the next round of trade talks scheduled for Wednesday. These developments seem to have triggered a flight to safety.

Technical Analysis

Gold prices have regained momentum on Friday and again this morning after flashing a double bottom during Thursday's session. The prices are back up above the $1280 level but the $1285.35 is still a stubborn resistance level. The price is currently hovering around the $1282.19 resistance level with a strong momentum. We will keep focusing on the upside and this time we will be watching the $1288.35 resistance level.

Support: 1282.19/ 1280.11
Resistance: 1285.35/ 1288.35

Chart (H4)