Gold bulls eyeing $1,333 as China studying devaluing yuan

• China is considering devaluing the yuan in order to gain an edge in the trade war.
• Gold is trading near daily highs close to the $1,333.80 resistance.

Gold is trading at around $1,332.94 virtually unchanged on Monday as the trade war escalation between the US and China intensify. China announced that it is evaluating the potential effect of a progressive yuan devaluation in order to gain a competitive advantage in the current trade war. The news is supporting gold which is a safe-haven in times of uncertainties. 

Gold weekly chart

The bulls are trying to close above last week’s close at $1,333.80. 

Gold daily chart

The market is trading above the 50, 10 and 200-period simple moving average. The bulls are targetting the $1,345.1 and $1,348.40 swing highs; followed by the $1,356.83 swing high. Resistances on the daily chart are at $1,319.30 swing low and at $1,306.90 swing low of March, 20. 

Gold 4-hour chart

The bulls need to break $1,333.80 successfully if they want to reach the resistance zone at $1,345.1-$1,348.40 discussed on the daily chart commentary. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) indicators are constructive to the upside.