Geopolitical tensions take over market sentiment and we see it refelcted in Gold, the price of which surged by 1.6% over yesterday’s trading session. The yellow metal surged at least $20 higher to $1275.01 throughout yesterday’s session and has this morning already attempted $1279.66.
Next resistance lies in the region $1293:$1300 this area being demarcated by a downward sloping trendline that has been providing resistance since mid-2016.
Gold was not the only beneficiary of geopolitical tensions, support also went to the JPY – another currency traditionally percieved as the safe haven in similar times. The JPY is up across the board, garnering gains against all of the major currencies this morning.
USDJPY slipped to session lows of 109.50 yesterday, after opening at 110.91 and this morning we are seeing fresh lows of 109.34 already. Tradertip sees next daily supports at 109.10:108.76 region, and if price holds at the first support price action is likely to grind higher towards 110.30:110.52 on a dialy timeframe.
The tensions in North Korea, Syria that also potentially involve the bigger players such as China and Russia domainate investor concerns at the moment. In the meantime even the situation for the upcoming French general elections and the candidates that are doing best at the polls are getting investor attention and the latter mull the probability of repercussions into the EU.