The yellow metal failed to take advantage of the market’s risk-off run as the USD strength disappointed Gold buyers. Global economic slowdown fears continue to hurt trade sentiment whereas political uncertainty adds strength into the safe-haven demand. Increasing uncertainty over Brexit plus other comments from President Trump addressed to ECB President Mario Draghi dragged global investors back to risk safety on Wednesday. However, with the US Dollar in demand, Gold couldn’t enjoy the flight to safety and ended up declining to the lowest levels in a week during yesterday's session.
Gold prices continued to edge down during yesterday's and today's early session, printing a new low in a week at $1307.18 per ounce. The price is ever since trading around the $1310 level with no support to find and looks more vulnerable for another sell off with the decreasing momentum. We will be focusing on the $1303.07 support level.
Support: 1314.16/ 1310.38
Resistance: 1316.78 / 1321.47