The buyers need a successful breakout above the 1480/85 resistance zone. If this happens, the next main resistance is likely the 1515 level. On the flip side, if the bears fade the current resistance zone, the market could drop to 1465 and potentially to the 1455/50 and 1430 next nearest support zone.
At the time of writing, gold is trading at $1475.36 having travelled in a narrow range of between $1474.27 and $1480.58 as it consolidates the recent trade and Brexit headlines.
On the geopolitical front, which has dominated markets for all of 2019, we have finally started to see worst-case scenarios dissipate over the horizon which has capped gold this month, so far. Firstly, the US and China are moving closer to inking a so-called 'phase-one' trade deal which addresses some bulky issues that have kept Beijing and Washington at odds in a trade war for almost two-years. Then, across the pond, the UK elections finally broke the deadlock in UK politics and opened up avenues for a Brexit deal which, underpinning risk appetite and consequently stripping some of gold's safe-haven premium.
At the time of writing, gold is trading at $1475.36 having travelled in a narrow range of between $1474.27 and $1480.58 as it consolidates the recent trade and Brexit headlines.
On the geopolitical front, which has dominated markets for all of 2019, we have finally started to see worst-case scenarios dissipate over the horizon which has capped gold this month, so far. Firstly, the US and China are moving closer to inking a so-called 'phase-one' trade deal which addresses some bulky issues that have kept Beijing and Washington at odds in a trade war for almost two-years. Then, across the pond, the UK elections finally broke the deadlock in UK politics and opened up avenues for a Brexit deal which, underpinning risk appetite and consequently stripping some of gold's safe-haven premium.