Gold prices trading on positive foot after the correction yesterday which send the gold price below the 1,500 mark. Positive headlines from Brexit and US-China trade talks improve investor sentiment. On the US-China trade tensions front, the situation is getting positive as the negotiations restarted in Washington. Better headlines increase investor’s appetite for riskier assets. President Donald Trump said that the first trade negotiation went very well. Yesterday a report from World Gold Council, showed that the global gold-backed ETFs hit an all-time high, adding 75.2 metric tons of gold in September to a total of 2,808 metric tons.
The Fed meeting minutes from September said that the FED is in favour of more rate cut to avoid economic slowdown. Gold Support and Resistance
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Gold trading slightly higher in European trading session but yesterday’s drop has canceled the positive momentum which started two weeks ago from $1,458. Gold price breached yesterday below the 20 and 50-day moving average. On the downside, immediate support for Gold stands at $1,490.66 daily low and then $1,474 the low from October 2nd. The precious metal has established a strong support zone at $1,458 recent low. On the upside, resistance would be met at $1,499.36 today’s high while a break above will open the way for a move up to 1,519.49 high from October 3rd. Gold prices have been oscillating around the $1,500 mark the last trading sessions on a purely technical basis but long term prospects still remains bullish for gold.