Gold prices opened at $1486.460 and have placed a high of $1497.090 and low of $1482.800 since then. The overall movement for gold remained bullish. On Monday, GOLD prices regained after the continuous drop of the previous three days. Last week, the drop-in gold prices were caused by the optimistic results from US-China trade talks. But the trade deal hopes dampened on Monday when a report from china was released stating that China wanted more talks before completing the so-called “phase one” of the agreement.

According to Bloomberg, China wants another round of trade negotiations by the end of October before signing the trade deal outlined by Trump. Trump on Friday said that both parties had reached “phase one” of the trade deal. The optimism that came on Friday after the announcement from US President Donald Trump faded away after the news from China for more trade talks before signing.

The meetings held in the previous week regarding trade negotiations were the first of many such meetings that are to come. The outcomes of negotiations are to be documented within five weeks, so the earliest statement is expected in November. And China wants to have more discussions by the end of October before documentation.

Meanwhile, Steven Mnuchin, US Treasury Secretary, said that if a trade deal with China has not been reached by December 15, then an additional round of tariffs could be imposed on Chinese Imports.

The uncertainty over US-China trade talks re-emerged and urged traders back to safe-haven assets like gold; hence, giving a bullish trend to Gold prices at the beginning of the week.

Furthermore, the escalating military action in Syria by Turkey against Kurds has created another reason to increase the demand for safe-haven assets on Monday. Reports show that Kurdish rebel forces have now demanded the support of President Assad’s troops against incursion by Turkey.

Lack of macroeconomic releases from the United States on Monday due to a bank holiday left Gold prices to follow the trend set by the news.

GOLD – XAU/USD – Technical Levels
Support Resistance
1469.75 1512.8
1450.39 1536.49
1407.34 1579.54

Key Trading Level: 1493.44

Last week, gold faced a hard time violating the triple top level of 1,511, and below this, it continued trading bearish until 1,474. On the way, gold also broke the double bottom support level of 1,489.

For now, the same 1493.44 level is likely to extend resistance for gold. Today, 1493.44 will be a crucial level to focus as gold can stay bearish below it to target 1,487 and 1,482.

Good luck!