The yellow metal traded higher on Monday, as a wave of risk aversion due to growth worries in china and geopolitical tensions in the Middle East triggered demand for the yellow metal.
- The commodity inched higher after breaking resistance level at 1077 in the early European session, and currently is approaching to test resistance level located at 1081.
- Any downside is expected to be limited around 1075 levels as the support level located at 1074 is likely to hold the bears from falling further below and bring a rebound back towards higher levels.
- To the upside, the strong resistance can be seen 1081, a break above this level would expose the commodity towards 1085 levels.
- To the downside immediate support can be seen at 1077, a break below at this level will open the door towards 1075 levels.
Recommendation: Go long around 1079, targets around 1084/1088, SL 1072
Support levels: S1-1077, S2-1075, S3-1073
Resistance levels: R1-1081, R2-1083, R3-1085
