The price of COMEX Gold futures is up 0.50% at $1857 per troy ounce on mid-Tuesday trades.
Gold started the week on a mild bullish note as the price climbed around 0.30% on Monday, extending last week’s advance. Gold price is currently on a five-day rally due to declined US dollar and its yields.
Weak Eurozone and the UK business PMIs drove investors to the safe haven of the US government bond, which weighs down the treasury yields, aiding the upside in the non-yield yellow metal. Moreover, the bright metal also capitalizes on a broadly subdued US dollar as it came under renewed selling pressure after the EUR/USD pair rebounded sharply on hawkish comments from the ECB president, Christina Lagarde.
Rising geopolitical tensions between the US and China over Taiwan bode well for the traditional safe haven. The US president Joe Biden recently announced that the US would militarily defend Taiwan if China invaded.
On the technical side, the RSI of COMEX gold futures stood at 48.27 and is currently trading below MA (5) and MA (20) but above MA (50). SO, BUY position can be taken with the following target and stop-loss:
TRADE SIGNAL: COMEX GOLD FUTURES – BUY: 1865, TARGET: 1900, AND STOP-LOSS: 1845