- Spot gold has starte out the week giving back a portion of Friday’s upside.
- Gold is currently trading at $1,300 with a high of $1,303 and a low of $1,299.
- February delivery on Comex put on $18.30, or 1.4%, to settle at $1,304.20/oz after trading as high as $1,305.80.
The precious metals was up 1.4% on to close the week on Friday. Futures settled above $1,300/oz, with prices for gold at their highest since June. The US dollar dropped back and investors looked ahead to geopolitical turmoil along with global growth worries. At the same time, stocks were higher, supported by positive earnings reports and headlines that an agreement has been reached to temporarily end the US government shutdown.
Eyes on China
Today, a lot will count on China considering the announcements that the PBoC will release another $37 billion in additional cash to banks for the purpose of stimulating growth, stocks in the US should continue in their positive trajectory.
Gold levels
Gold left a long bullish Marubozu Japanese candlestick on Friday, extending its ascent from the mid-Aug 2018 lows. While bulls are in control,1269 is the 23.6% Fibo retracement of the entire move which could be the bearish downside target in the interim. However, should the price rise through the resistance around the 1300 psychological figure, (RSI is positive and room to go on the approach until overbought territory), 1340 comes as the next key resistance level.
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