On Thursday, gold prices are mostly steady below 1,526 as investors locked in profits, after the bullion gained almost 1% during the early Asian session amid safe-haven buying. Investors are confused and rushing towards safe haven shelter over concerns that a historic drop in long-term US bond yields could portend a global recession. The US yield curve reversed for a second straight trading session on Thursday as bonds are also considered as safe-haven security.

The series of economic data suggesting a slowdown in global growth amid the US-China trade war is hurting the recent optimism in the market and driving risk-off sentiment. Thus, investors seem to move their investments in gold.

GOLD – XAU/USD- Technical Analysis

On the technical front, gold has tested and failed to cross below the 50 periods EMA support on the 4-hour timeframe. The EMA was extending support around 1,483 and this level has proved to be very solid. For now, the EMA is extending support around 1,495.

On the upper side, resistance still stays at 1,526 and the bullish breakout can extend buying trend until 1,535 today.

Most of the movement in gold depends on the US retail sales data. Economists look very optimistic about retail sales as the figures are expected to jump by 0.3% which is slightly slower than 0.4% beforehand. Considering this, investors are likely to continue trading the dollar with a slightly bearish sentiment, keeping the dollar supported.

XAU/USD – Technical Levels

Support Resistance

1475.61 1531.49

1449.51 1561.27

1393.63 1617.15

Key Trading Level: 1505.39

XAU/USD – Gold – Trade Idea

I will be looking to stay bearish below 1,526 with a stop loss above 1,530 and take profit of around 1,510. At the same time, buying can be seen above 1,530 today.

Good luck!