Gold between weakness and uncertainty!
Gold prices slid lower on Friday, as the dollar regained some ground after Thursday’s three major risk events, although markets were still awaiting the final results of the U.K. election.
The dollar recovered despite Former FBI director testimony on Thursday which accused President Donald Trump of firing him to try to undermine his investigation into possible collusion by the Trump campaign team with Russia’s alleged efforts to influence the 2016 presidential election.
A stronger U.S. dollar usually weighs on gold, as it weakens the metal’s appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Gold losses were attenuated following UK U.K. Prime Minister Theresa May’s Conservative Party losing its parliamentary majority in in Thursday’s general election, potentially disrupting Brexit negotiations.
May faced calls to leave the government on Friday after the election left no single party with a clear claim to power just 10 days ahead of the start of Brexit negotiations.
Gold trades in an upward trend line according to the Bloomberg 4H Chart.
If there is a continuation of the bullish momentum, the commodity could break out above 1279.91 and possibly extend more gains toward the 1286.36.
In the case of a bearish scenario, Gold could fall back toward the 1269.21 and extend losses through the 1264.96.
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