Gold started the week sharply lower after the leaders of the two biggest economies agreed to stop the tariffs game. Investors sentiment has improved after the news from Osaka and traders dump safe heaven assets like gold and Yen. The gold entered the Asian trading session with a gap down below the strong resistance at 1,400.
Gold gives up over 23 dollars or 1.67 percent to 1,385.76 piercing all the major hourly moving averages. The low for the day was at 1,384.47 and the high at 1,397.70. The main trend is still bullish but the short term momentum has shifted to the downside. The immediate support for the yellow metal stands at $1,357 the low from June 20 while more solid support can be found at 1,316 the 20 day moving average. On the upside resistance would be met at 1,397 the today’s high and 1,400 round figure while sellers will step in at 1,412 the 100 hour moving average. Traders must be cautious on gold at current level as the volatility is very high. New long positions only if the precious metal closes convincingly above 1,400.Don’t miss a beat! Follow us on Twitter.