Gold jumps above $1210 amid Brexit developments

Yellow metal soars and gains almost 1% in a few minutes.
Lowe US yields favored gold as UK Cabinet meeting brings no certainty.

Matías Salord FXStreet

Gold has risen $10 during the last 60 minutes on the back of Brexit headlines. Uncertainty about the future of UK PM May pushed the Pound to the downside and added support for gold.

The metal moved all day in a small range around $1200 and recently broke to the upside. It climbed above $1203 and jumped to $1215, reaching the highest level since last Friday. Price is holding near the top, with the positive tone intact.

Market participants are digesting the latest news on Brexit. The pound is falling sharply in the market and also equity prices in Wall Street. The risk aversion environment pushed US yield to the downside, adding more support to gold prices.

Levels to watch

To the upside, the next strong resistance could be seen at $1220, followed by $1227 and $1232. Above the key level to watch is $1235: a daily close significantly above would open the doors to more gains. On the flip side, $1208 is now the immediate support followed by $1195 (weekly low).

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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