With protests in Hong Kong turning serious and China’s inflation data meeting expectations, Gold prices surged during today’s early session pushing back above the $1335 level. The yellow metal was on its back foot since the week’s start as relief from trade tussles trimmed safe-haven demand. However, threats to Mexico and China from the US President Donald Trump, coupled with criticism to the Fed, restricted the yellow metal’s downturn. In Hong Kong, the government’s decision to debate a law in the parliament to allow extradition to China met with wide protests that turned violent. However, latest reports suggest that the government has postponed debate on the extradition bill to an unspecified time. On the other hand, inflation numbers from China, one of the world’s largest Gold customer, met market expectations wherein the CPI grew to 2.7% from 2.5%.
As expected, Gold prices edged down during yesterday’s session to reach the 38.2% Fib retracement before surging back up this morning above the $1335 level. The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. The price is currently trading just above the $1335.05 support level with an increasing momentum and looks set to continue its upward move. The next level we will be watching is the $1343.09 resistance level.
Support: 1335.07 / 1331.48
Resistance: 1339.67 / 1343.09