Gold prices tumbled yesterday from three-week highs after failed to break above the 1,535 resistance that I mention in yesterday’s gold prices technical analysis report. Investors dumb safe-heaven assets after US President Donald Trump said that a trade deal with China might come sooner than expected. Political developments in US after Nancy Pelosi formally initiated impeachment proceedings against President Trump weigh on investors sentiment, above that the weak global growth concerns can explain why investors still prefer the safety of yellow metal.
The long term bullish momentum for the precious metal is intact, but the short term outlook now is neutral as XAGUSD trades below the 20-day moving average. On the upside, resistance would be met at 1,511 today’s high while a break above will open the way for the 1,535 yesterday’s high. Immediate support for Gold stands at 1,502 daily low and then at $1,491 the 50-day moving average, a break below will open the way for a visit down to 1,486 recent low. Gold tested the strong support at 23.6% Fibonacci retracement around 1,486 which gave the recent rebound.