Gold Intraday Rally Breaks Above 1,500 on Brexit and Trade Tensions Worries
Gold price running an impressive intraday rebound adding almost 20 dollars as risk-off returns to markets as a no-deal Brexit looks now as a possible scenario. On the trade war front the situation is getting darker ahead of the negotiations restart later this week, as China said it would retaliate after US Government put Chinese technology companies on blacklist. Gold prices reacted immediately to the news breaking above the 1,500 psychological resistance.
The positive momentum for gold which started from the recent lows at $1,458 is still intact as gold price regained the 20 and 50-day moving average. On the upside, resistance would be met at $1,506.73 today’s high while a break above will open the way for a move up to 1,519.49 high from October 3rd. On the flipside, immediate support for Gold stands at $1,500 psychological support, a break below will open the way for a visit down to $1,486 daily low. The precious metal has established a strong support zone at $1,458 recent low. Bulls are in control of gold prices as long as the price holds above $1,500. A break below will question the intraday rebound and might attract some offers that can re-establish the negative trend with a move down to 1458.