The commodities (gold and oil) were very noisy on Monday on the back of mixed fundamentals. Oil prices slumped more than 4% as Libyan ports resumed and traders eyed possible supply increases by Russia and other producers.
However, gold trades steady as the demand for gold in top consumer China has been limited. Yup, it’s mostly due to the ongoing trade war with the United States which has weakened the local currency, making it hard for Chinese investors to buy gold.
Gold is facing a resistance near $1,247 along with a support near $1,240. The 50 – periods EMA is supporting the bullish trend as gold just has a bullish crossover. The violation of $1,247 can extend the bullish rally towards $1,251. Whereas below $1,240, the market can stay bullish until $1,236.
Gold – XAU/USD – Trading Levels
Support Resistance
1239.43 1255.77
1234.37 1260.83
1226.2 1269
Key Trading Level: 1247.6