FundamentalOverview

Gold ended the last weeknegatively, as first the positive expectations for the US-UK trade deal, andthen for the US-China talks over the weekend, weighed on the precious metal.

In the bigger picture, goldremains in an uptrend as real yields will likely continue to fall amid Fedeasing. But in the short-term positive news on the trade front or a hawkish Fedcould trigger more downside for gold as the market prices out stagflationaryfears.

GoldTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that gold continues to pull back amid the positive news on the trade front.From a risk management perspective, the buyers will have a better risk toreward setup around the major trendline, while the sellers will look for abreak lower to increase the bearish bets into the 2957 level next.

Gold Technical Analysis– 4 hour Timeframe

On the 4 hour chart, we cansee the price fell all the way back to the key support around the 3258 level. This is where we canexpect the buyers to step in with a defined risk below the level to positionfor a rally back into the 3367 resistance. The sellers, on the other hand, willlook for a break lower to increase the bearish bets into the major trendlinenext.

Gold Technical Analysis– 1 hour Timeframe

On the 1 hour chart, we cansee that we have a minor downward trendline now defining the current pullback. Ifthe price gets there, we can expect the sellers to lean on the trendline with adefined risk above it to position for further downside. The buyers, on theother hand, will look for a break higher to increase the bullish bets into newhighs. The red lines define the average daily range for today.

UpcomingCatalysts

Today, we get the US-China trade talks briefing. Tomorrow,we have the US CPI report. On Thursday, we get the latest US Jobless Claimsfigures, the US PPI and the US Retail Sales data. On Friday, we conclude theweek with the University of Michigan Consumer Sentiment report.

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