On Thursday, the precious metal gold prices trade bullish as investors await clarity on Brexit following the European Union delayed a verdict on allowing Britain an extension. Considering the safe-haven demand in gold, the U.S. dollar has dropped from the 99.5 level to 97.2 continuously for the last two weeks.
It’s been months now, the financial markets are volatile and trading the risk-off sentiment in the wake of geopolitical risks such as the U.S.-China trade war, Brexit, Hong Kong rallies and stresses in the Middle East.
As you know, traders divert their investments from the U.S. dollar, stock markets, and other financial instruments to the safe-haven asset gold during the time of uncertainty. That’s precisely what happening right now. Traders seem to move investments into the gold.
Moreover, the weaker dollar is also keeping the precious metal gold supported due to its negative correlation with gold. Let’s take a look at the technical side of the market.
XAU/USD – Technical Levels
Support Resistance
1488 1496.18
1484.02 1500.37
1475.85 1508.55
Key Trading Level: 1492.2
On the technical side, gold has violated the ascending triangle pattern, which was keeping gold in check below 1,496. Since this level is violated, we may see gold prices going towards 1,504 and 1,507 area. Therefore, consider keeping buying above 1,497. All the best!
