With the market sentiment in favor of the US Dollar, Gold prices tick down to near support levels this morning amid the latest upbeat comment from the New York Fed President John Williams ahead of the Non Farm Payroll despite the expectation that the figure could print softer to 185K from 263K prior. On the other hand, the White House talks to avoid Mexican tariffs failed while the US President Donald Trump kept tweeting in favor of the Fed’s rate cut while highlighting strong position compared to Mexico in terms of trade. Adding to this, China’s central bank Governor praised the nation’s ability to cope up with the US-led trade protectionism ignoring short-term draw on the economy.
As expected, Gold prices went back up to retest the $1339.67 before immediately retreating after loosing traction on the momentum. The price is currently trading just above the $1332 level as the momentum fades away slowly from the overbought zone. We expect a recovery in prices after this overextended upward move. The level we will be watching is the $1327.08 support level.
Support: 1331.48 / 1326.20
Resistance: 1335.07 / 1339.67