Fresh rally on risk aversion pressures key barriers at $1303/06
Spot gold rose close to psychological $1300 barrier on Friday, in extension of strong rally of the previous day and marked nearly 0.8% advance since Asian opening on Friday.
Unexpected US tariffs on goods imported from Mexico boosted global fears of trade war spreading, prompting investors from riskier assets into safe-havens.
The yellow metal benefited from fresh risk aversion, as Friday’s bullish acceleration penetrated thick daily cloud and broke through Fibo barriers at $1295/97 (76.4% of $1303/$1269 / 38.2% of $1346/$1266) that exposed key barriers at $1303 (14 May high) and $1306 (daily cloud top / 50% of $1346/$1266).
Rising fears about global slowdown on persisting trade tensions between US and China and the newest announcement on Mexico tariffs, improved the sentiment for further advance.
Caution on lack of bullish momentum that can slow the advance, but close above cracked $1297 Fibo barrier would generate positive signal and keep focus at the upside.
Res: 1300; 1303; 1306; 1310
Sup: 1296; 1290; 1288; 1286