The precious metal added to its recent strong gains, with a combination of supporting factors fueling the ongoing positive momentum for the third consecutive session on Friday. Gold caught some aggressive bids and surged to the highest level since April 2018, around the $1358 region. Against the backdrop of growing concerns over a further escalation in trade tensions between the world's two largest economies, the precious metal has been attracting safe-haven flows. This coupled with the fact that the Fed is likely to cut interest rates by the end of this year further benefited the non-yielding yellow metal and collaborated to the ongoing positive momentum. However, prices have entered into a technical corrective mode after getting exhausted by the overextended upward move.
Gold prices surged on Friday and touched the highest level since April 2018 at $1357.97 per ounce, before showing signs of exhaustion and correcting below the $1240 level as of this morning. The price is currently trading below the 1339.67 resistance level with a decreasing momentum as we can see on the RSI chart. We believe that the correction is not over yet and the recent downward move most likely will continue. We will be watching the $1331.47 support level.
Support: 1335.07 / 1331.48
Resistance: 1339.67 / 1343.09