Gold is down by 0.4% but continues to hold above $1,400
Price continues to trade under the 100-hour MA (red line) as near-term bias remains more neutral for now but the key thing here is that gold continues to hold above the $1,400 level in my view. That is continuing to give buyers some encouragement but all the focus now will be on the Trump-Xi meeting over the weekend but of course, just be aware of potential trade headlines that may come over the next two days still.
With the dollar losing its haven allure and gold taking up that mantle now, the fate of trade talks will ultimately be the key driver of gold direction in the short-term. Hence, that is the risk traders will face ahead of the weekend and as we begin next week.
For buyers, it’ll be key to drive price back up above the 100-hour MA and I wouldn’t doubt it if we see US-China trade talks break down again. On the flip side, a more positive and optimistic outcome from talks this weekend – which I see as being likely, even if it is just for show – should put pressure on gold at the start of next week.