Gold opens the trading week in the red zone (-0.4%) amid growing optimism among investors regarding the completion of the first phase of trade negotiations between the US and China. At the weekend, Trump national security adviser Robert O’Brien said the US and China could still sign an interim trade agreement before the end of this year. Donald Trump also spoke quite warmly about the PRC leader Xi Jinping over the weekend. Commenting on the situation in Hong Kong, Trump noted that the United States supports the independence of the region and will in every way impede the introduction of the Chinese military contingent into the territory of the administrative region. Along with this, Trump noted that he fully supports his friend Xi Jinping.
These comments have weakened investor interest in defensive assets and are helping to lower the price of gold on Monday.
Today, the economic calendar has virtually no important news. The dominant influence on trading will continue to have news in the field of international trade.
Having fixed below the level of 1465.00, the gold price continues to move downward. Locally, the price may be supported by the level of 1457.00, but in case of breakdown of this mark, the next target for bears will be the level of 1450.00.
Resistance Levels: 1465.00, 1475.00, 1485.00;
Support Levels: 1457.00, 1450.00, 1440.00.
The main scenario is a breakdown of support at 1457.00 and a decline to 1450.00.
An alternative scenario is a rebound from the level of 1457.00 up.
The fundamental background is negative. The chart is dominated by bearish signals. Inside the day we consider shorts towards the level of 1465.00.