Fundamental Analysis:

Gold has hit successive record highs this year as the trade conflict continues to unsettle global markets, diminishing appetite for risk assets and driving a rush to safe-haven assets. The International Monetary Fund (IMF) is expected to lower its global growth outlook in its new projections later this week, though they do not foresee a recession. “Our new growth projections will include notable markdowns, but not recession,” said IMF Managing Director Kristalina Georgieva.

Technical Breakout:  

Gold is trading higher and currently testing the Fibonacci expansion level at 3380.00. MACD shows increasing bullish momentum, and RSI has formed a golden cross, indicating a positive short-term outlook. However, risks remain if a bearish divergence forms. Investors should keep an eye on both the MACD and RSI lines; if they curve and bearish momentum emerges, a technical correction in gold prices could follow.

Potential Risks: The ongoing U.S.-China trade war remains the primary risk factor

Monitoring: Investors are advised to continue monitoring trade development between US and the world to gauge the likelihood movement for the asset classes.

Resistance levels: 3380.00, 3490.00

Support levels: 3290.00, 3220.00

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