Gold holding above $1,300 still as confluence of support levels keeps price afloat
After sealing a break below the 100-day MA (red line) earlier in the week, gold sank to two-month lows near the $1,300 level but held up.
As mentioned then, the key support levels for sellers to break through is the 200-day MA (blue line) and the 50.0 retracement level @ $1,301.35. There's also the added psychological figure level @ $1,300.
Gold is up by 0.3% on the day at $1,309 levels after the move to the downside stalled. So far, the movement in gold has a lot to do with the movement in the dollar over the past few weeks. But you still can't discount geopolitical tensions from impacting sentiment.
US-China trade talks over the next two days will be one to look out for if you're trading the commodity, and the other key risk event will be the US jobs data due tomorrow.
The former is tied to the nature of gold's trade but I reckon we won't be seeing any major risk-off move to come from talks between the two parties. The latter will have the more prominent say as we close out the week, as it will influence the dollar's trajectory - which has been the driving force behind gold prices currently.
As for levels, downside moves will have to break the support levels mentioned above to gain further momentum towards the 61.8 retracement level @ $1,286.06. Meanwhile, any upside move will have to clear the 38.2 retracement level @ $1,316.64 first before a test of the 100-day MA @ $1,323.37 in an attempt to turn bias back to bullish.
