Gold prices continue to fall below $ 1290

Basic analysis

The optimism around the global stock markets seems to be well accepted by traders so far. Along with trade and credit data from China, kept the positive start of the US earnings season led by JPMorgan and Wells Fargo on risk appetite on Friday. Therefore, gold prices fell to the lowest point since April and are trading in today's early session below 1290. US 10-year Treasury yields remained unchanged at 2.56%, near a four-week high. Despite rising risk sentiment, the International Monetary Fund (IMF) continues to highlight the risks of lower growth on the global economy.

Technical Analysis

As expected, gold prices continued to fall below $ 1290. The momentum has dropped dramatically as the price currently trades above $ 1287. The yellow metal still has more room to enter the oversold area, so we will focus on the support level of $ 1282.19.

Support: 1285.35 / 1282.19
Resistance: 1288.35 / 1291.35


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