Gold – Bears Enter The Bullion Market, Beijing Agrees to Reduce Tariffs

During the Asian open, gold prices took a bearish turn as the US dollar rebounded. The dollar index that measures the Greenback’s strength against a basket of other currencies edged up 0.2% to $97.072, causing a drop in the gold prices.

What caused a sudden drop in gold?
Well, the demand for safe-haven gold started diminishing after White House economic advisor Larry Kudlow backtracked from US President Donald Trump’s announcement that Beijing had agreed to reduce tariffs on US-made cars. This triggered the demand for the US dollar while investors started selling gold.

GOLD – Technical Outlook
On the hourly timeframe, gold is likely to test the resistance come support level of $1,234. Below this, gold prices can drop towards $1,230 and $1,227. While gold can stay bullish above $1,234 to target $1,239 today.

Support Resistance
1235.84 1241.64
1233.14 1244.74
1227.34 1250.54
Key Trading Level: 1238.94