The U.S. trading session has brought bears to the gold market in droves. After a strong overnight, bullion values have resumed the recent slide of the past several weeks. At press time, the market is only up moderately on heavy volumes.

Whipsaw trading conditions are typically a result of uncertainty creeping into the minds of market participants. With a major announcement from the U.S. FED on the immediate horizon, gold traders have been split on which way to go.

Gold Technical Outlook

For the gold bugs, the last 10 sessions have been brutal. Facing a 550+ tick drop in the June futures contract, buyers have taken an early retirement. The outlook for gold is simple — the trend is down and 1300.0 is the 5000-pound elephant in the room.

After a break beneath 2018’s low (1309.3), price has entered a period of consolidation. The 1310.0 handle has seen heavy two-way action thus far in the trading week. As of now, it appears that this level is setting up as topside resistance.

The number on everyone’s mind is 1300.0. I expect the bulls to defend this level with vigor. If nothing else, a period of sideways trade at 1300.0 is very likely before this market makes another directional move.

Overview: In my opinion, there are several items that may suddenly spike pricing in the immediate term:

• New hostile actions from North Korea
• Cancellation of the planned U.S./North Korea Summit
• High-profile indictments being handed out in the Trump/Russia collusion investigation

As we enter the Summer months, none or all of these items may eventually come to pass. In the event that any of these events make headlines, be on the lookout for a sudden bull run in gold.