During the early Asian session, the precious metal gold prices flew to near 10-month highs at $1,327 on a weaker dollar and the ongoing developments in the US-China trade deal.

The dollar index held at around $96.760, adding just +0.02 so far today as the market participants are considering the recent developments from the US-China negotiations as positive. Recalling, the US has less to lose from this trade war and the market is trading dollar with a bearish bias. Weaker dollar ultimately hikes the demand for dollar substitute gold.

GOLD – Key Technical Points

• On the technical front, gold is in the overbought range with relative strength index staying above 80.
• Gold has immediate resistance at $1,328 and supports around $1,320 and $1,317 today.
• On the 4-hour chart, gold has formed a bearish inside bar, which is suggesting a potential bearish trend in gold.

Support Resistance
1322.71 1329.07
1318.87 1331.59
1312.51 1337.95
Key Trading Level: 1325.23

Gold – XAU/USD – Trade Plan

I will consider selling below $1,325 and buying above $1,317 today with a stop loss of 30 pips on both sides.

It’s mostly due to the light economic calendar today. Good luck!