GOLD prices closed at $1454.94 after placing a high of $1462.12 and a low of $1454.03. Overall the trend for Gold remained bearish.

Gold fell for the 4th consecutive day on Monday, hitting a two-week low on the back of increased demand for riskier assets that emerged after the renewed optimism that the trade conflict between US & China will end soon.

On the weekend, China announced that it would seek to improve protections for intellectual property rights. This announcement by China gave a boost to the positive mood around the trade negotiations because the intellectual property rights was a sticking point between both countries.

Some analysts called the progress in phase-one trade deal as temporary relief and not a real longer-term solution. According to them, the selling sentiment of Gold was congested because of lack of confidence over these trade developments.

Gold has gained more than 13% this year on the back of increased demand for safe haven assets due to political & economic uncertainty caused by tariffs dispute of two of the biggest economies and their impact on global economic growth.

Meanwhile, investors also kept an eye on late night speech of US Federal Reserve Chairman Jerome Powell on Monday. He said that based on the latest assessment of the US economy, the interest rates were likely to remain at current levels.

The Federal Reserve cut its rates by quarter points for the third time this year to support the economy against US-China trade dispute & global economic slowdown but also gave signals that there would be no further monetary easing this year.

Due to the lack of any macroeconomic data and unexpected news from trade negotiations, Gold prices moved steadily with the previous trend on Monday.

Gold – XAU/USD – Technical Levels
Support Resistance
1457.77 1469.89
1453.41 1477.65
1441.29 1489.77

Key Trading Level: 1465.53

Gold’s choppy trend seems over as it has violated the double bottom support level of 1,456, which opens further room for selling until 1,449. Clients’ positions are long, so it’s going in our favor. It looks like it’s about to form a hammer on the 4-hour chart around 1,452 area, and if that happens, we may see a slight bullish reversal around this level until 1,457.

Good luck!