Gold advances on fresh risk aversion on trade conflict escalation
Spot gold accelerated higher on news that China retaliated to US tariffs that heated the trade conflict, with threats of further escalation of crisis.
Bad news prompted investors into safe-haven assets and gold price rallied through important barriers at $1293/95 (55/100SMA) and 1297 (Fibo 38.2% of $1346/$1266), coming ticks ahead of o psychological $1300 barrier.
Improved sentiment on fresh risk-off mode can drive gold price through $1300 handle and next significant barrier at $1303 (base of thickening daily cloud), violation of which would expose key resistances at $1310/11 (10 Apr lower top / daily cloud top.
Fresh rally turned daily MA’s into bullish configuration, with bullish momentum in steep ascend, adding to bullish outlook.
Daily close above broken $1297 Fibo barrier will generate bullish signal which is needed to confirm scenario.
Res: 1300; 1303; 1306; 1310
Sup: 1297; 1295; 1293; 1289