Gold jumps to two-week high as S&P 500 futures slip on political uncertainty

The Comey memo is shaking things up this Wednesday morning in Asia. The S&P 500 futures dropped 14 points or 0.62%, while the safe haven gold clocked a two-week high of $1245.02 levels.

Will Gold break above 200-DMA?

The disclosure that President Trump divulged classified intelligence to two high-ranking Russian officials was somehow digested by the markets on Monday.  However, in just 24 hours another scandal - Comey memo, has hit the wires and the markets are having a tough time digesting the political uncertainty.

The 200-DMA positioned at $1245.24 could be breached if the risk-off tone in the markets is carried over to the European stocks later today. As of now, the FTSE 100 futures and DAX futures are down 17 points and 59 points, respectively. 

Meanwhile, the S&P500 VIX is still at the lower end of its post-GFC range. A potential spike in the Wall Street’s “fear gauge” could increase the demand for the yellow metal as well.

Gold Technical Levels

The metal was last seen trading at $1243/Oz levels. A break above $1245.24 (200-DMA) would open up upside towards $1254.71 (23.6% Fib retracement of $1122.81-1295.46) and $1263.87 (Feb 27 high). On the other hand, a breakdown of support at $1236.24 (session low) could yield a pull back to $$1229.51 (38.2% Fib retracement of $1122.81-1295.46 + 100-DMA) and $1225.85 (May 4 low).