XAU/USD Outlook: The yellow metal falls on optimistic tones from US/China trade talks

Slobodan Drvenica Windsor Brokers

GOLD

Spot gold price fell in early US trading on Thursday following latest news that China is willing to reach agreement with the US and prevent further escalation of trade conflict.
The yellow metal traded within the range above psychological $1500 level before accelerating lower, in attempts to make a clear break above daily cloud (top of the cloud lays at $1502), but the action stalled again on fresh risk appetite that was sparked by optimistic tones from top-level US/China talks which started today.
Fresh weakness through cloud top and $1500 support also broke pivot at $1496 (Fibo 38.2% of $1459/$1519 upleg) that opens way for test of another significant level at $1487 (8 Oct trough), break of which would spark further easing.
The latest news soured near-term sentiment, with rising bearish momentum and daily indicators (stochastic/MA's) turning into bearish setup and adding to negative signals. Close below daily cloud top ($1502) is needed to maintain bearish bias.

Res: 1500; 1502; 1507; 1512
Sup: 1493; 1489; 1487; 1482

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

1. R3 1522.6
2. R2 1517
3. R1 1511.3
PP 1505.7
1. S1 1500
2. S2 1494.4
3. S3 1488.7

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.