FxWirePro: Gold breaks key resistance line; rise to $1360 likely

Geopolitical tensions between the United States and North Korea has led to a break of key resistance line for the gold price. As the war rhetoric between the United States and North Korea reached a boiling point with both the parties threatening to act, Gold has broken the resistance line around $1267 per troy ounce and reached as high as $1289 per troy ounce. The global sell-offs in equity price have also favored buying gold.

While the President of the United States, Donald Trump said that any North Korean threat will be met with fire and fury, likes of which the world has never seen before, North Korea state-owned news agency said that a plan is being chalked out by North Korean military to strike Guam, which is a US overseas territory in Western Pacific Ocean and holds large naval and air-force base.

As the key resistance line cleared, it is more likely that the gold price would move higher and test resistance around $1360 per troy ounce area. We would like to recommend buying gold at the current price and more so at correction. Gold is currently trading at $1386 per troy ounce.