Despite heightened concerns over US-China relations, Gold prices traded mostly sideways last week with a slight bias to the upside. The price action revealed that investors showed little interest in the asset as a safe-haven investment. Instead, they preferred to hedge against stock market risk in the more-liquid Japanese Yen and US Treasuries.
Gold prices edged higher again to retest the trend line presented on the chart and printed a daily high of $1288.09 per ounce, but quickly erased again the gains in repeated scenario to find support at $1280 level. The price is currently trading just above the $1282.19 resistance level as the momentum is starting to build up. Our focus remains on the upside while still expecting to break above the trend line and settling above it.
Support: 1282.19/ 1280.11
Resistance: 1285.35/ 1288.35