Gold outlook: Yellow metal falls on fresh risk demand

Slobodan Drvenica Windsor Brokers

Gold

Spot gold fell $10 in European trading on Thursday on fresh risk mode, sparked by optimistic news regarding US/China trade talks.
Fresh weakness erased Wednesday’s recovery and pressures again daily cloud base ($1478), cracked on Tuesday’s 1.7% fall.
Renewed demand for riskier assets soured gold’s near-term sentiment, as bearish daily studies maintain pressure and Tuesday’s long bearish daily candle weighs.
Break below daily cloud would generate stronger bearish signal for extension of bear-leg from $1515 (1 Nov high) but traders look for further clarification of development in trade talks, following optimistic comments released this morning, to have clearer direction signal.
Converged 20/30 DMA’s (1494) mark solid resistance which should keep the upside protected and maintain bearish bias.
Only sustained break above $1500 pivot would neutralize bears and shift focus higher.

Res: 1489; 1494; 1497; 1500
Sup: 1481; 1479; 1476; 1473

Interested in XAU/USD technicals? Check out the key levels

1. R3 1507.24
2. R2 1500.64
3. R1 1495.9
PP 1489.3
1. S1 1484.55
2. S2 1477.95
3. S3 1473.21

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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