Gold Weakens Despite Weakness in Dollar – Technical Indicators in Play

The precious metal GOLD edged up during the Asian session but dropped to give up the early morning gains. It’s been trading around $1,330 as investors are in a state of indecision.

Typically, the US dollar has a negative correlation with gold, but this time both trading instruments are acting strangely. The US dollar eased after the POTUS Donald Trump said he would delay a rise in tariffs on Chinese goods as trade discussions between the two countries were making headway.

Support Resistance

1322.11 1333.7
1316.07 1339.25
1304.48 1350.84
Key Trading Level: 1327.66

On the technical front, gold is facing a strong hurdle at $1,332 along with support around $1,324. Outside of this range, gold can reach $1,340 or $1,319 depending on the direction of the breakout.

Good luck!