Gold prices on turn-around Tuesday flipped over from six-year highs following news that the US was delaying tariffs on China with hopes of further talks to take place in September. The US Trade Representative’s office said the US would delay imposing 10% tariffs on certain Chinese products until December 15th. this follows the apparent discussion between Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He. Officials are said to engage in talks again within two weeks. However, the good news was dimmed down within the same hours as to when there were reports that the Chinese military was headed to the Hong Kong border as protestors continue to demonstrate and keep the Hong Kong airport locked down. On another note, US CPI printed in line with market expectations in July at 0.3% m/m, pushing annual inflation up 0.2%points from June to 1.8%.
Gold prices dropped from the highs of $1535 per ounce to a low of $1480 before settling just above the $1500 level during yesterday’s session. The price is currently hovering around that level with a declining momentum as the RSI points out but seems to have a strong support in this area. We will be focusing on the downside as the divergence between the price and the momentum is showing its effect. The level that we will be watching is the $1482.82 support level.
Support: 1506.02 / 1482.82
Resistance: 1520.64 / 1539.61