- Gold is struggling to continue its recent advance above $1,308 troy ounce as the US stock indices futures are trying to reverse the overnight losses.
- Gold rose significantly throughout the week as the US-China trade war is "put on hold" and Trump canceled the meeting with Kim Jong Un.
Following its strong advance from Thursday, the yellow metal found sellers at the 1,307 level in early American trade as US stock indices futures are trying to reverse the overnight losses. It is now trading at round 1,303.60 slightly down on Friday.
Gold rose more than $25 since Monday as the climate of fear in the markets favored the safe-haven metal. What sent gold above the 1,300 mark is US President Donald Trump canceling the summit with the North Korean dictator, Kim Jong Un. Adding fuel to the fire to the already fragile geopolitical context, Trump plans to impose 25% tariffs on imported vehicles to the US. Moreover, the trade talks between Washington and Bejing are not yielding any agreement so far on the second round of discussions.
Meanwhile, also benefitting gold is the 10-year Treasury yield benchmark which is falling for the 6th consecutive trading session.
Gold 4-hour chart
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The metal is now trading above its 50-period simple moving average (SMA) on the 4-hour time-frame but the market is challenging an important descending trend-line which can provide strong resistance in the short-term. Bulls will likely meet strong resistance at the 1,307.77 (high of Friday) and at the 1,310.00 psychological level. To the downside, bears will likely meet support at the 1,291.40 swing high followed by the 1,287.55 swing low.
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