Gold rise in the last hours of trade - N. Korea refused to negotiate with Washington

Gold prices rose sharply on Friday, when geopolitical uncertainty is on the agenda again, after North Korea rejected Washington talks to curb its nuclear weapons program.

"While there is a constant hostile policy against my country (North Korea) from the United States and as long as the military games continue on our doorstep, there will be no talks," North Korean Ambassador Han Tae Song said. This fueled geopolitical uncertainty, raising demand for gold, as market participants feared North Korea could avenge if Washington responded with new sanctions to the isolated nation. On the other hand, the weak dollar today further supports the growth of precious metal.

Technically, the metal price managed to break the short range and stay above the level of resistance formed by the top of the range and 50SMA. In the medium term, the price is on an upward trend after adjusting to 38.2% coupled with two diagonal support, 200SMA and horizontal support. RSI 14 goes over 50 - signal for a new upward wave.

Minutes before the closing of the markets is not good, but the price gives us good levels to focus on early next week.

SL: 1253

Alternative scenario: If the price goes back below the horizon of the support area and stays there in several successive bars, then the positive scenario will break and more likely to see a drop in the price of the metal.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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