Gold prices posted strong gains on Monday maintaining the solid momentum from last Friday. Price rallied to a four-month high of 1327.89 before pulling back modestly. The gains came led by the trade uncertainty and a possibly slower pace of growth in the US for the month of May. The dovish comments from the St. Louis Fed also helped investors in their flight to safety.
Can Gold Maintain the Gains?
The current reversal off the highs near 1327.89 comes as price tests the upper resistance level. A close below the 1320.81 level could, though, see gold prices retreating lower. The main support at 1285 remains key to the downside. However, the overall bias is now to the upside. The unfilled gap from Friday’s close at 1304.18 remains the initial target followed by a move to the 1290 handle.
