Jun 22 2018

Global trade war fears likely to derive safe haven demand

Gold(XAUUSD):- The safe-haven metal fell to a fresh low of 2018 to 1260.84. Technical indicators like RSI below 30 is indicating that gold is oversold and MACD below zero line showing signs of recovery along with global trade war fears likely to revive safe-haven demand and provide an additional boost. On daily chart MACD has shown positive divergence against the price action indicating upside in yellow metal. Gold seen holding onto long term trend line support at around 1255-1260 levels and is likely to head initially towards 1280 levels (377 Day SMA) and on upside break of 1280 can move towards the near term resistance of 1305 (200 Day SMA).