Gold managed to break above $1,440 area after a certain period of consolidation. The rate cut helped the commodity to break above this strong resistance level.
Today gold prices rose amid the escalating US-China trade dispute, while political concerns in Hong Kong also spurred safe-haven demand. Gold is certainly benefiting from the global concerns about the outlook for growth, and central banks are likely to maintain their accommodative stance, so the demand for gold as an alternative investment has increased dramatically. Moreover, it is expected to surge higher.
Last week, US President Donald Trump unexpectedly announced additional tariffs on $300 billion worth of Chinese imports. According to local reports, China vowed to fight back but did not give any further details. It might lead to a mixed market sentiment and the quote's correction.
As for the current scenario, gold is considered to be a safe haven, the same as the Japanese yen. As the yen gained impulsive momentum, gold is expected to reach $1,500 in the coming days.
TECHNICAL OVERVIEW:
The price has recently retested $1,440 mixing the market sentiment. However, the bullish bias is anticipated to remain strong. Even though the price can return to $1,440 and retest it again as a support, being above $1,440 with a daily close indicates the presence of bulls in the market. Thus, the price is likely to rise towards $1,500 area in the coming days.
TECHNICAL LEVELS:
SUPPORT- 1,350 / 1,400 / 1,410 / 1,440
RESISTANCE- 1,480 / 1,500 / 1,550 / 1,600
BIAS- Bullish
MOMENTUM- Non-Volatile
