Gold prices found their footing yesterday as a rout of the dollar and falling US bond yields drew support for the yellow metal, and helped platinum prices bounce from 9.5year lows. The yellow metal’s fall to a nearly 7-month low of $1,238.80 attracted a fresh wave of buying pressure as demand for the safe-haven trade returned as China and US are set to implement tariffs on Friday.
Technically, prices found support near the swing low of Dec. 2017 of $1236. Besides, the recent fall in gold looks similar to Sept.-Dec. 2017, when gold price fell from a peak of $1357 to $1236. From early 2017 the weekly RSI(14) has been moving in the range of 40-65 and at present is near to the lower end of the range indicating a possibility of a bounce back in prices. In the short-term prices are likely to find support at $1252 – $1246, whereas a move above $1262 would push the prices higher towards $1268-$1273.