Gold turns positive, S&P 500 futures trims gains
- Gold is reporting marginal gains, eyes bullish breakout.
- S&P 500 futures have trimmed gains, China A-shares index drops 2.5 percent.
Currently, Gold (XAU/USD) is trading at $1,347, having clocked a low of $1,342 earlier today.
The yellow metal opened below Friday's close of $1,345.20 as the risk assets found bids as the US-led strikes on Syria did not invite retaliatory action from Russia.
The S&P 500 futures rose 0.6 percent earlier today. Also, the stock markets in Japan and Australia reported moderate gains. However, Chinese stocks have begun the day on a negative note. China's A-share index is down 2.3 percent.
It appears the S&P 500 futures have trimmed gains (currently up 0.25 percent), tracking the decline in the Chinese stocks. The yellow metal may pick up bid if the S&P 500 futures go negative. Further, a weaker-than-expected US retail sales figure could weigh over the US dollar and help gold gain altitude.
That said, what bulls need is a convincing break above $1,380 - a move that could yield a near 90-degree rally to $1,480 - $1,500.
Gold Technical Levels
A break above $1,357 (March 27 high) would expose resistance lined up at $1,361.76 (Feb. 16 high) and $1,365.29 (April 11 high). On the other hand, an hourly close below $1,339.82 (10-day MA) could yield a pullback to $1,331.07 (50-day MA) and $1,325.69 (100-day MA).
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
