Gold rally towards $1,200 resistance

After moving higher yesterday, the yellow metal appears different this morning. At the moment, gold rally towards $1,200 resistance after bouncing from the $1,190 support level. Where is the precious metal headed next?

12 September, ADS Securities – Gold recovered from the sharp sell-off from $1207 down to the lows of $1187 and made its way back into neutral territory while trade headlines and economic data were characterized by unpredictability.

Tension between China and and the US has elevated again but the real issue is about NAFTA negotiations as the three countries are running out of time to seal the deal and that pushed the CAD to the upside and hence Gold as well. Today’s US PMI are expected to print positively so we might see a stronger greenback and more pressure on the yellow metal.

Gold rally towards $1,200 resistance

Gold prices lost momentum as they were trying to break to the upside and printed some lower lows after they found support at the $1188.6 level. The $1198.3 level remains the main resistance level to be watched, meanwhile, the RSI is pointing towards some weakness in the momentum so we will be focusing on the $1184.6 support level.

Support: 1198.6 1197.75

Resistance: 1207.8 1214.15

Chart (H1)

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