Gold prices rose slightly on Tuesday against weakening US dollar and investors’ optimism after the European Commission accepted amendments to the UK’s Brexit deal. Although gains were limited as the agreement also buoyed sentiment for riskier assets.
Spot gold price rose by 0.1% to 1,294.90 USD per ounce, while US gold futures added 0.3% to 1,294.70 USD per ounce.
Reflecting investor sentiment, holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose by 0.4% to 769.53 tonnes on Monday.
There was a bit of movement out of the US dollar which lifted gold slightly. The precious metal also found some support from increasing concerns about global growth.
The yellow metal has recently found some support from increasing concerns about global growth, briefly rising above 1,300 USD on Friday. The weak US jobs data and modest retail sales in January were seen as signs of a US economy losing momentum. Investors were now focused on the US consumer price index due at 1230 GMT and on US-China trade negotiations. Gold could rise to 1,400 USD by the end of 2019, with global growth concerns a factor underpinning the advance.
Among other precious metals, palladium was up by 0.2% to 1,539.12 USD per ounce, while Platinum gained 0.4% to 827.74 USD per ounce. The silver advanced by 0.4% to 15.37 USD per ounce, after touching its highest since March 1 earlier in the session.
Gold price analysis
After closing the previous day with small losses, the gold price staged a modest rebound during the first half of the day on Tuesday but, once again, failed to break above the critical 1,300 USD mark.
There is no clear direction for gold and for a period of one week or two we can see it trading around 1,280 USD and 1,310 USD range. Gold may retest a resistance at 1,301 USD, a break above which could lead to a gain into the range of 1,307-1,313 USD, according to analysts. This development leaves GOLD targeting the 1,314 USD resistance zone in the days ahead. Further out, resistance resides at the 1,320 USD level where a break will aim at the 1,330 USD level. A turn above there will expose the 1,340 USD level and even 1,350 USD level.
With a daily close above 1,300 USD (psychological level), the pair could aim for 1,306 USD (50-DMA) and 1,315 USD (March 1 high). On the downside, supports are located at 1,292 USD (daily low), 1,285 USD (March 8 low) and 1,280 USD (March 7 low).
Last week Gold declined to 1,280 USD but the sellers couldn’t push lower and Gold traded in a tight range for most of the week. The top of that range came at 1,290 USD, which was broken late in the week as the sentiment turned negative on the ECB growth and inflation downgrade. Safe havens benefit when the sentiment turns negative and, as a result, Gold pushed higher, while USD/JPY slipped lower.
Silver price analysis
During trading yesterday, silver fell from 15.29 USD to 15.29 USD per ounce. This morning it traded at levels 15.27 USD per ounce.
If silver overcomes the resistance range of 15.35-15.37 USD, it will target reaching and testing the zone 15.42-15.42 USD. Upon success, the upward trend will continue to 15.50-15.51 USD.
On the downside, if the silver fells below the support area of 15.22-15.21 USD, the next support will be the zone 15.13-15.12 USD. In case of a breakthrough, the downward movement will continue to 15.07-15.06 USD.