Gold rallies through 10 4hr SMA, with Trump fanning trade war angst

• Gold rallies on trade war angst as dollar takes a hit and yen catches a bid.
• Gold now through key techncial levels on the 4hr sticks, where next?

Gold has just caught a decent bid in thin trade and did so ahead of the Tokyo open on the back of Trump fanning the trade war flames by US President Trump asking his Treasury department to examine another 100B in tariffs against China, according to a statement from the White House Press Secretary's office.

Trump tells Treasury to consider another 100B in China tariffs - White House

Gold reverses losses

Spot gold rallied from 1328 to a recent high of $1,332 meeting the descending 100 hr-SMA as a resistance while trading at the highest levels around the same time yesterday. Gold futures had closed lower on Thursday, on a stronger dollar while and stocks took off to the upside in a strong recovery as concerns about a trade clash between the U.S. and China took a back seat. The June gold contract dropped by $11.70, or 0.9%, to $1,328.50/oz. The retaliation comes from Trump after China said it would impose tariffs of up to 25% on 106 American categories of products. 

Gold levels

Gold's recovery attempts are now picking up momentum on the 4hr sticks and RSI turns higher as the price takes out the100-4hr SMA and prices the decensing 10-4hr SMA. The 21-D SMA supports at 1328 while the price of the yellow metal remains well above the ascending 21-W SMA at 1312 at least. Bulls need to get above the 1363/82 major resistance zone as being the 2014-2018 resistance line, 2016 and 2018 highs.