Gold surges through $1350 level, highest since April 2018

US-China trade tensions continue to benefit the commodity’s safe-haven status.
Fed rate cut bets, weaker bond yields, subdued USD demand remained supportive.
Technical buying on above $1248 area further accelerates the positive momentum.

Haresh Menghani FXStreet

Gold caught some aggressive bids in the last hour and surged to the highest level since April 2018, around the $1358 region.

The precious metal added to its recent strong gains, with a combination of supporting factors fueling the ongoing positive momentum for the third consecutive session on Friday.

Against the backdrop of growing concerns over a further escalation in trade tensions between the world's two largest economies, the precious metal has been attracting safe-haven flows.

This coupled with the fact that the Fed is likely to cut interest rates by the end of this year further benefitted the non-yielding yellow metal and collaborated to the ongoing positive momentum.

Moreover, the US Dollar remained on the defensive amid a weaker tone surrounding the US Treasury bond yields and remained supportive of the strong bid tone around the dollar-denominated commodity.

Meanwhile, possibilities of some heavy trading stops being triggered on a sustained move beyond the $1348 region (previous yearly high) seemed to be a key trigger behind the latest of a sudden spike.

Hence, it would be prudent to wait for a strong follow-through movement in order to confirm that the current up-move is backed by any genuine buying and marks a fresh near-term bullish breakout.

Technical levels to watch

XAU/USD

Overview
Today last price	1355.78
Today Daily Change	13.40
Today Daily Change %	1.00
Today daily open	1342.38

Trends
Daily SMA20	1304.74
Daily SMA50	1293.1
Daily SMA100	1300.67
Daily SMA200	1268.06

Levels
Previous Daily High	1343.2
Previous Daily Low	1332.48
Previous Weekly High	1348.12
Previous Weekly Low	1306.18
Previous Monthly High	1306.9
Previous Monthly Low	1266.35
Daily Fibonacci 38.2%	1339.1
Daily Fibonacci 61.8%	1336.58
Daily Pivot Point S1	1335.5
Daily Pivot Point S2	1328.63
Daily Pivot Point S3	1324.78
Daily Pivot Point R1	1346.22
Daily Pivot Point R2	1350.07
Daily Pivot Point R3	1356.94

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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