Safe havens got sold off aggressively at the end of last week after the Conservatives won a comfortable majority in the British Parliament and the Phase One deal was accepted by US and China. USD/JPY lost around 100 pips, while GOLD made a swift reversal and lost around $25, after having surged higher on Thursday morning.

The sentiment improved on Friday morning, but after looking beyond the immediate results of the UK elections and Phase One deal, the big picture still hasn’t changed much. Brexit will still go ahead and the UK might even crash out if they don’t reach a deal with the EU by the end of next year, which will be hard.

Regarding the Phase One deal, the details of that deal were below expectations of the markets, so traders stopped selling safe havens and they have been hanging in limbo since Friday afternoon, the JPY in particular. Gold has been finding some mild demand in the last several days, because the uncertainty regarding Brexit and main issues that the US has with China still remain, besides the still weakening global economy.

Moving averages are also playing a part in keeping Gold bullish, although the price has retraced lower now as the sentiment is improving slightly in financial markets. Gold is heading towards the 50 SMA (yellow) now on the chart above, so this might be a good chance to go long. But, we will follow the price action to see if the price will form a reversing signal down here. If so, then we might open a buy signal, so follow us for trade ideas, guys.