Spot gold gained traction last Friday, after U.S. President Donald Trump’s measures against China. Even though he did not pull out from the phase one trade deal with China, there are still a considerable amount of uncertainty over the future relationship between the world’s two biggest nations.
Meanwhile, major U.S. cities from Los Angeles to Philadelphia imposed curfews, amid violent protests after the killing of George Floyd by Minneapolis police. The chaos would be a blow to the fragile economy.
From a technical point of view, spot gold is gathering upside momentum as show on the 1-hour chart. Last Friday, we mention that there were some bullish signs, and finally gold has shown a clear upside breakout from the bearish channel drawn from May 18. Now, the level at $1,722 might be consider as the nearest support, with prices likely to test the 1st and 2nd resistance at $1,754 and $1,765 respectively. Alternatively, losing $1,722 would suggest that the next support at $1,711 might be exposed.