Gold prices ha been traveling to the upside but met a wall at the highs of $1524 from a low of $1494.20. Futures, on the other hand, marked their highest finish since 2013 on recession sentiment bounding around the markets following disappointing data from China and the eurozone at the same time that UK's and US's 2/10-year yield curves inverted for the first time since the Global Financial Crisis. Gold prices have continued to outperform across the FX space as the go-to place for when risk-off hits the fan and is tinkering on a surge much higher in this current deterioration of risk appetite and pending doom environment. Trump is making hard work of the trade wars and had likely shown his hand too soon in delaying the tariffs in a state of panic as US stocks crumble ahead of the 59th quadrennial US presidential elections 2020, scheduled for Tuesday November 3. However, the trade war saga is not about to be resolved any time soon.
Gold prices revisited recent highs after traveling below the $1500 level but couldn’t break to the upside as the $1520.64 resistance level stood in front of the bulls. The price is currently trading below this level as a strong divergence between the price and the momentum emerges. We will be focusing on the downside with the $1506.02 support level on our watch.
Support: 1506.02 / 1482.82
Resistance: 1520.64 / 1539.61