The news reports signaling the US-EU trade rift and likely renewed geopolitical tensions between the US and Saudi Arabia triggered risk-off.
Buyers target 50-day SMA during further upside.
Gold prices are taking the rounds near $1297 early on Tuesday as investors give more emphasis to the latest news reports signaling an increase in global geopolitical tension.
According to the analysis XAUUSD.x pair is expected to find support at 1291.14 and a fall through could take it to the next support level of 1285.14. The pair is expected to find its first resistance at 1303.41, and a rise through could take it to the next resistance level of 1309.68.
Previous Day range was 12.27 and Current Day Range is 34800.
The yellow metal rose to a two-week high on Monday as conflict in Libya and the US President’s another hit to Iran grabbed market concentration. Headlines regarding the Libyan National Army’s March to obtain the capital Tripoli and Donald Trump declaring Iran’s revolutionary guard as a terrorist organization helped the Gold to remain strong yesterday.
During early Tuesday, investors welcomed the development from the UK that favored an amendment rejecting no-deal Brexit.
However, the hopefulness couldn’t last long after the Financial Times reported that the US is proposing tariffs worth $11 billion on the EU products, as well as the Airbus.
The risk-off sentiment got supplementary support when the Trump administration announced a ban on 16 Saudi nationals from entering the U.S. due to their roles in the murder of journalist Jamal Khashoggi. Saudi Arabia is still to respond to the ban and may generate news reports during the day.
Yields on the US 10-year note remained unchanged near 2.519%.
Investors may now concentrate more on the qualitative catalysts like Brexit and the geopolitical plays including the US.