Gold has taken a significant hit over the last few weeks trading as overall market sentiment has turned more positive and strong data out of the US has led to dollar strength across the board. Sentiment has been a big driver of markets over the last six to twelve months and Gold has fluctuated in line with its haven status, with the trade situation between the US and China looking more positive over the last few weeks we’ve seen the precious metal drop over 4% from it’s recent highs. Reports that the US could pull all of its tariffs off of Chinese imports that have hit the market over the weekend could place further pressure on Gold in the next few days however investors will also be looking for any signs of more volatility in the negotiations which could see some buying interest flood back into the market.
From a technical perspective Gold broke a couple of key support levels during Friday’s trading. A key long term support trend line on the hourly chart broke just south of 1320.00 and this helped the move extend down to levels under 1300.00.
Short term trend line resistance now comes in around the 1320.00 level with support now located on the yearly lows and consolidation levels around 1275.00 which also coincides with the 38.2% Fibo level of the move up from the 2018 low.