On Tuesday, the price for the safe-haven asset gold dropped below the psychologically important $1,300 level, despite the increased trade war between the U.S. and China.
The drop in the gold prices was triggered due to a trade war between China and the U.S. after China announced to take revenge a tariff-hike on $60 billion worth of U.S. goods.
The possibility of a continued trade war has shaken investors, as you know gold is a safe-haven investment asset. Gold prices tend to move in opposite directions to stock and other assets looked as risky, raised about 1.5% last week.
Gold’s Technical Outlook
Gold is has violated the next resistance level of 1,291 and jumps to 1-Month Highs Near $1300 as the trade war between the U.S. and China. For now, gold is facing resistance around the 1,302 level along with support around 1,284.
In fact, gold has formed a bullish engulfing pattern on the 4 hourly charts, which is suggesting a bullish trend in gold. The bullish breakout of 1,302 could extend gold prices towards 1,3907 today.
Key Trading Level: 1286.3
Gold – Trade Tips
Consider staying bullish over 1,286 and bearish below 1,301 to benefit choppy trading sessions. However, the violation of the trading range will determine further trends in gold.