Gold prices were little changed this morning following the release of the minutes from last month’s Federal Reserve monetary policy meeting. The fed said their patient approach to monetary policy action could continue for "some time" amid concerns over the sluggish pace of inflation, according to the minutes released yesterday. Traders will now focus on the Sino-US trade war, noting that the US Dollar seemed to be driven higher amid the trade conflict and that could put pressure on the yellow metal. Reports this morning said Washington is urging South Korea to drive Huawei products out of the country, citing security concerns.
Gold prices still trading in the same range despite yesterday's mini attempt to break to the upside before getting pushed down by the 1277.18 resistance level. The price is currently hovering around the $1274.72 support level but the interesting thing to watch is the divergence that has emerged between the momentum and the price as presented on the chart. Our focus will now be on the upside as we will be watching the $1280.11 resistance level for the next 48 hours.
Support: 1274.72 / 1271.85
Resistance: 1277.18 / 1280.11