Gold Report : Gold is another safe haven that has been negatively impacted by positive newsflow on the US/China talks. The price reaction on major markets yesterday would suggest that despite a weakening dollar, gold is not an asset to be stuck in long should there be a positive outcome from these trade talks today. A bearish outside day candle has flipped the technical outlook towards a negative near term bias once more.
However, this would take another step forward fs support at $1487 were to be breached today. For now, we need to continue to see this as a medium term range, but the negative pressure would certainly ramp up should the old $1481 level be breached too. Momentum indicators are still very mixed in their configuration on the daily chart, however a growing negative bias is threatening to take hold on the hourly chart.
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Gold Resistance is building around $1513 again and continued failed intraday rebounds under here be increasingly worrying for any bulls. Further positive newsflow on the trade talks and gold could accelerate lower now, with key support at $1458.50. Resistance at $1513/$1525 is mounting again another potential lower high looks to be forming.
