Gold aims to revisit $1289/90 despite UK/US holiday
- EU election results question present policymakers, fuels the bullion.
- Holidays at the leading bourses may confine further upside.
With the pessimism surrounding global trade developments and greenback weakness joining EU election results, Gold prices are on the bids near $1287.30 while heading into the European session on Monday.
Despite Fed policymakers’ neutral bias, the US Dollar (USD) has recently been on a back foot as soft data at home and lack of positives from trade relations with China dragged the greenback down.
While USD weakness favors the yellow metal, victory of eurosceptic parties in the EU parliament election and Brexit party at the UK further added strength into the buying sentiment.
However, buyers are likely to be challenged as markets in the UK and the US are closed for the day. As a result, positive closing by the global risk barometer, the US 10-year treasury yields, may gain less attention doing forward.
Elsewhere, the US President Donald Trump is in Japan but no important news concerning both the country’s trade relations have been conveyed. Further, Chinese lawmakers continue conveying their disappointment from the Trump administration while the dragon nation’s banking and insurance regulator indicated losses for the Yuan bears.
Technical Analysis
Not only multiple highs marked since mid-April but 50-day simple moving average (SMA) also highlights the importance of $1289/90 resistance area, a break of which can escalate the up-moves towards 100-day SMA level of $1297.
On the flipside, $1279 and a nine-month-old ascending trend-line at $1276 could become strong support, a break of which can recall $1270 and $1266 back to the chart.