Gold rallies towards June swing highs as bulls step in again

Gold prices have soared through the symmetrical triangle's resistance and bulls remain in control, pressing towards 25th June and 3rd July tops. Gold is currently trading at 1436, +0.69% on the day, having travelled between $1,414.70 and $1,436.94 on the day so far. 

The moves come as the market price back in the likelihood of a prolonged trade war between the U.S. and China with tit for tat headlines creeping their way back through with Trump threatening additional tariffs on Chinese imports. Additional,  we dovish central bank expectations baked into the gold cake, and Federal Reserve William's was recently crossing the wires, advocating a vaccine shot of easier monetary policy. 

• Fed's Williams: Better to take preventative measures -RTRS

U.S. stocks are also taking a hit, weeping back below record highs in a third consecutive day of declines so far. "Indeed, with earnings season kicking off any contraction in corporate profits would represent a second consecutive quarter of contraction and the first earnings recession since 2016. Worries that the trade wars have taken a bite into corporate earnings already has global equities easing off the highs, which along with technical support at $1,400/oz has seen gold bounce higher again," analysts at TD Securities explained. 

Gold levels

Technically, a symmetrical triangle has been taking shape and today's rally has priced through the top side of the pattern, bringing in the scope for a run through 1440 objective. The price action shows that bulls are in control with a bullish shadow on the daily stick. Preferably, bulls will want to see a 4HR and session close above 1430. On the flip side, below 1420/25, bears will look for a run below the 1400 psychological level. The 23.6% Fibo of the latest swing lows and highs are located at 1398. Below here, we are looking down the barrel at $1,373/76 zone which meets the 19th June spike correction lows and the 38.2% Fibo of the same swing ranges.