While latest comments from the US Treasury Secretary triggered some risk-off during late-Wednesday, activating the yellow metal’s pullback, Gold prices remained little unchanged till this morning. Yesterday, the US Treasury Secretary Steve Mnuchin said that he sees brighter chances of the US-China trade deal for which 90% task is already done. His comments pleased investors ahead of the key G20 meeting Japan that’s becoming even more important due to the likely trade talks between the US and China. Investors await more clues as to how the US and China can reach the trade deal while meeting on a Saturday dinner. In addition to the G20 developments, first quarter gross domestic product (GDP) data from the US will also be the key to watch. The US Q1 2019 GDP is likely to reiterate 3.1% annualized mark on a quarterly basis.
As expected, Gold prices edged lower during yesterday’s session and continue to do so this morning amid a divergence between the price and the momentum. The price is currently trading above the $1400 level, however, with the RSI signaling a sharp drop in the momentum away from the overbought zone, we will be focusing on the continuation of the correction especially the $1392.8 support level.
Support: 1401.62 / 1392.8
Resistance: 1410.78 / 1422.59