On Thursday, gold was able to recover some of lost positions amid increased concerns on the US-China trade negotiations. Donald Trump unexpectedly announced that he would not meet with Xi Jinping until March 1 as it was planned before, when the term of the trade truce reached in early December 2018 expires. This explicitly hints the real state of things and no surprise that investors perceive this as a very negative signal.
In addition, White House Economic Advisor Larry Kudlow, in an interview with the Fox Business Network, said that China and the United States are still far from making a deal. The parties still do not even have a draft that could indicate disagreements on individual issues and possible ways to eliminate them.
Today in economic calendar there is no important economic data, traders will focus upon geopolitical news and technical factors. Additional support for gold can come from weaker USD dollar, which yesterday showed some signs of weakness and the intention to go for a correction after six days of growth.
Technically speaking, yesterday gold local reversal was formed on the chart, which may indicate the completion of the corrective move and the resumption of the upward impulse, as part of the bull trend. Target for last upward move is around 1350.00 level. Intraday levels 1312.00 and 1310.00 should be considered as local supports. The closest tactical resistance is located around 1320.00