On Wednesday, the yellow metal gold prices held close to a more than six-year high of 1,548 after rising more than 1% in the previous session, as fears of a possible recession and the trade conflict between China and the United States drove investors to safe-haven assets.
On the charts, gold was mostly unchanged today at $1,542.71, slightly down after touching $1,554.56, its highest since April 2013 on Monday.
U.S. – China Trade War
On Tuesday, the global stock whipsawed initially jumping higher but then dipping on the back of tweets from an editor at the Chinese state news outlet.
While the market continues to follow tweets from U.S. President Trump. The pressure was back on the dollar on Wednesday, as nagging fears, the Sino-U.S. trade war will drag on and severely hurt economic growth led to yet another slide in U.S. bond yields.
Gold – XAU/USD – Technical Outlook
Gold has mostly traded in line with our previous forecast and continues to trade higher aim trade war which is why investors are moving their funds from the stock market to billions, such as gold and silver. On the technical front, bullion’s 14-day relative strength index (RSI) was around 70, indicating that the commodity was approaching overbought territory.
On the chart above, we have applied Fibonacci extension which is suggesting gold’s initial support around 1,536. While resistance stays at 1,548.
Gold – Support and Resistance Levels
Key Trading Level: 1538.24
Gold – Daily Forecast
Keeping technical analysis in mind, consider staying bullish above 1,538 to target 1,548. While selling can be seen below 1,538 today. All the best,