Gold prices remain steady as UK & EU agree on new Brexit deal - Highlight Investment Research

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Friday, 18 October 2019

Gold prices remain steady as UK & EU agree on new Brexit deal

On Friday, Gold prices held steady after Britain managed to eke out a deal for its exit from the European Union, lifting risk appetite, while a sluggish dollar provided support to the metal. Spot gold was unchanged at $1,491.62/ounce. US gold futures shed 0.2% to $1,495.40/ounce. European Union leaders unanimously backed a new Brexit deal with Britain on Thursday, leaving Prime Minister Boris Johnson facing a battle to secure the UK parliament’s backing for the agreement if he is to take Britain out of Europe on Oct. 31.



MCX gold price has moved higher from lower levels during the last session and closed around 38,200 levels. Gold price has faced strong resistance of its falling trend line on the hourly chart at 38,320 levels. Gold price is trading below its super trend indicator on the hourly timeframe, which indicates more downside in the prices. Momentum indicator RSI has moved below 60 levels on the hourly chart. On the other hand, MACD has shown negative crossover on the hourly chart, which also supports our bearish view in the commodity. Based on above technical parameters, gold is looking bearish with a potential to reach 37,900.


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