In the early morning trade, June gold traded in a very tight trading range overnight and is currently trading at $1,282 an ounce. However, it did hold onto yesterday’s gains which has to be seen as a plus along with Teresa May’s resignation because the pound rallied of the news and put pressure on the US dollar. If the US dollar extends its sell-off, it should cause gold to extend on yesterday’s rally and maybe break back above $1,300 an ounce. A few Fed officials have stated that the ongoing US/China trade war will last sometime which can also put the shiny one back into safe-haven category.
If we take a quick look at the daily June gold chart, let’s keep things very simple for entry and exit points. If you’re a gold bull, last week’s May 14 high of $1,304 an ounce will be a critical level. If it breaks and holds last week’s high, then look for much higher gold prices which can even test the old yearly high of $1,356 made back on February 20. However, if you’re a gold bear, then obviously look for it to break roughly $1,267-69 which is has tested and held three times since April 23 including this week. Those prices are also the yearly lows on gold and the 200-day moving average is currently at $1,270 an ounce, so if gold breaks this critical level, look for a big sell-off down the $1,200 an ounce.
Gold Jun ’19 Daily Chart