Gold began the week by rising and breaking the resistance of a descending channel pattern. The movement was anticipated, as already on Friday the metal apparently bounced off the support of a dominant pattern and began to surge above 1,280.
Today on Tuesday, the yellow metal gold rose U.S. President Donald Trump’s warning to lift tariffs on Chinese imports rekindled trade tensions between the two nations and drove investors to secure positions in the in safe-haven assets.
On the technical front, gold hasn’t changed much from our earlier forecast. Gold prices are falling down from 1,283 to 1,277. Once again, the next support level remains 1,276. A bearish breakout of 1,275 can extend bearish rally towards 1,271.
R3: 1304.87
R2: 1290.78
R1: 1284.84
Key Trading Level: 1276.69
S1: 1270.75
S2: 1262.6
S3: 1248.51
The idea is to stay bullish above 1,275 as gold can bounce off above this level to target 1,281. Whereas, the bearish breakout of 1,275 can lead to gold prices towards 1,271/1,269. All the best!
