The precious metal gained 0.66% on Friday after initially falling below the 1273 level of support. The rebound in gold came as the ISM’s non-manufacturing PMI fell to a year and a half low. The non-manufacturing index fell to 55.5 in April as it extended declines from 56.1 in March. Over the weekend, President Trump renewed his threat about raising tariffs on China. The comments come as US and China trade talks head into a crucial week.
Can Gold Sustain the Bullish Momentum?
The strong surge in gold prices saw the precious metal firmly establishing support near the 1273 region. Price is now trading close to the main resistance level of 1285. On the daily chart, we see that gold prices remain firm, off the 200-day moving average. Overall, gold prices could maintain a sideways range, unless we see a breakout above 1285.
