- Gold post modest gains but continues limited above $1300.
- Technical outlook shows some bullish momentum but not strong enough.
- Key events ahead: Tump-Kim Jong Un meeting, US CPI and FOMC.
The yellow metal opened the week posting marginal gains. It benefits from a retreat of the US dollar during the second half of the day. Gold bottomed at $1,294/oz and then bounced to the upside. It peaked on US hours at $1,302, the highest since Thursday and pulled back to end the session hovering around $1,300.
Limited by $1300
It continues to move sideways, unable to consolidate firmly above $1,300 while the downside remains capped around $1,295. The tone favors modestly the upside.
The metal needs to post a daily close well above $1,300 (also the 20-day moving average) in order to clear the way to more gains. A consolidation on top of $1,300 would improve significantly the short-term technical outlook signaling a more significant bullish correction and that temporal bottom at $1,281 is in place.
If it continues to be unable to break and hold on top of $1,300 the tone would favor a continuation of sideways moves around $1,290/$1,305. A close below $1,290 would expose May lows at $1,282.
Risk events ahead
On Tuesday, the meeting between Donald Trump and Kim Jong Un will take place. Market participants will be looking into it. A positive outcome is discounted. Also on Tuesday US CPI data will be released and it is likely to have an influence on the US Dollar. The calendar also shows the FOMC meeting on Wednesday and the ECB on Thursday.
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