With the pessimism surrounding global trade developments and greenback weakness joining EU election results, Gold prices are on the bids this morning. Despite Fed policymakers’ neutral bias, the US Dollar has recently been on a back foot as soft data at home and lack of positives from trade relations with China dragged the greenback down. While USD weakness favors the yellow metal, victory of eurosceptic parties in the EU parliament election and Brexit party at the UK further added strength into the buying sentiment. However, buyers are likely to be challenged as markets in the UK and the US are closed for the day. As a result, the US 10-year treasury yields may gain less attention doing forward.
As expected, Gold prices regained traction this morning after consolidating during Friday's session and broke above the $1286 level. The price is currently trading just above this level as the momentum started to slow down a bit while the volume is drying out. The upside potential look more probable to happen as the price remains well supported above the $1282.19 support level. Th next level we will be watching is the $1291.35 resistance level.
Support: 1285.35.19 / 1282.19
Resistance: 1288.35 / 1291.35