Gold Price Retreats Below $1,600 as Traders Reassess the Risks
Gold price edged higher in early Asian trading session crossing briefly above the $1,600 mark to fresh six month highs immediately after the missile attacks in U.S. bases in Iraq. Now traders await President Trump statement on Iran latter on the day.
Turbulence in the markets is gold positive and headlines from the Iran – U.S. front will drive the price the next days. Any escalation in the conflict will push the gold price higher. Investors should also keep an eye on the upcoming ceremony of the phase one trade deal on January 15th, might improve investors sentiment.
Iranian government appears not to be aiming for further escalation and investors should adopt a wait and see approach.
Gold prices jumped over 25 dollars in the missile attack news and breached the $1,600. As there are no U.S. casualties the precious metal retreated from the $1,611 high back to $1,590 mark. Bulls are in full control and as the fear conquers the markets a move higher looks possible.
First resistance for the yellow metal stands at $1,611.34 the daily high. A break above might open the way for the next resistance at $1,619 the high from February 27th 2013. Next level to watch on the upside is the $1,653 from February 11th 2013.
On the downside initial support will be met at $1,573.93 the daily low. Yesterday’s session low at $1,554 will provide further support. In case gold price breaks below that level bears will target the low from January 3rd low at $1,327.