- Gold falling away as the US Dollar climbs on trade tensions easing.
- US, China have collectively agreed to hold off on further tariffs as negotiations continue.
Spot gold prices are heading lower in early Monday trading, pushing back towards lows near 1,285.00.
Gold has been unable to gather up the necessary momentum to stage a meaningful correction from recent lows, and is being sent lower by rebounding market confidence. Gold fell out of 2018’s technical consolidation last week, and the precious metal has yet to bounce.
The US and China have apparently set aside their differences and have stated they will avoid imposing any further tariffs on each other as they continue through the negotiation process. With US-China reciprocal tariffs ‘on hold’ for now, markets are rallying in the new week, and Gold is taking a hit as the US Dollar rebounds across the board.
Gold levels to watch
Bearish pressure continues to pile up on Gold, and as FXStreet’s own Haresh Menghani noted, “A follow-through selling pressure has the potential to continue dragging the commodity further towards $1275 intermediate level en-route its next major support near the $1266-67 region. On the upside, any momentum above $1290 level is likely to confront fresh supply near the $1294-95 region and is followed by a strong hurdle near the $1300 handle.”