Gold regained impulsive momentum while also recovering the weekly open gap. That indicates further upward pressure. The price rejected off the $1,440 again today in an impulsive move under bullish pressure.
The price soared recently as investors sought refuge in safe haven assets amid growing worries about a slowdown in the global economic growth and expectations for monetary easing in the US. Market sentiment took a further knock, propping up support for safe haven gold after the US government threatened tariffs on $4 billion of additional imports from the EU under a dispute over subsidies made to Airbus, the European aircraft manufacturer. Increasing trade tensions appeared to affect some of the overall optimism from a day earlier, when gold prices suffered their biggest one-day plunge since November 2016 after the US and China agreed to make a truce in their lingering trade war. As a safe haven asset, Gold prices are propped up by expectations for looser monetary policy from global central banks. The Federal Reserve is widely expected to cut rates this month.
Despite the trade worries, such gains in Gold prices without the expected retracement towards $1,320-50 indicates the bullish strength. Recently, the price formed Bearish Divergence while pushing up. The current daily chart pattern is indicating a potential double top formation. Though the daily candle has not confirmed the pattern yet, trading below $1,450 indicates that further bearish pressure can occur along the way before the price hits $1,500.
- SUPPORT: 1,300, 1,320, 1,350, 1,400
- RESISTANCE: 1,450, 1,500
- BIAS: BULLISH
- MOMENTUM: VOLATILE