The price of gold continues its upward trend. The precious metal is strengthening as the Federal Reserve can delay interest rate rise, the stock market is falling so are US bonds yields. Capital inflow in exchange traded funds remains high that also supports the price of gold.
On the other hand, gold purchases by the People’s Bank of China declined to 9 tonnes in March that is the lowest level since last year. However, the country is likely to continue increasing its gold reserves in order to diversify foreign-exchange holdings.
Support and resistance
RSI is giving no clear trading signals. Thus, it is recommended to place buy orders after the level of 1243.07 is broken out.
The nearest support level is at 1231.46.
The nearest resistance level is at 1243.07.
Long positions can be opened from the level of 1243.07 with the target at 1261.00 and stop-loss at 1235.00.