Gold plummets nearly $10 as it rose near strong resistance at $1,300/oz

Gold found an intraday high at 1298.50 before reversing sharply down towards the 1290.00 handle. It is currently trading at around 1288.70 down 0.18% on Wednesday. 

Early in Europe Gold initially rose on the back of risk-off mood. Comments by the US President Trump on the lack of progress between US and China regarding the trade war coupled with the news that there is a “substantial chance” that the meeting with the North Korean Leader, Kim Jong Un as it was planned on June 12 in Singapore might not happen, sent global stock indices lower and gold higher.

However, in early American session, the yellow metal swiftly reversed its intraday advance as it came close to the 1,300 psychological level and dropped nearly $10 in about four hours. No fundamental or geopolitical news has been reported yet concerning the recent drop in gold.

The next market-moving event is the FOMC’s minutes at 18:00 GMT this Wednesday. Hawkish comments on the economy and inflation can boost USD and potentially send gold lower. 

Gold 4-hour chart 

The main trend is bearish as the market is trading below its 50, 100 and 200-period simple moving averages on the 4-hour chart and below the key psychological level of 1,300. Supports are seen at the 1285.00 handle, 1281.70 swing low and at 1270.00 figure while resistances are seen at 1296.92 swing high and at the 1300.00 figure.