New trading week gold begins with a moderate decline against the background of the emergence of optimism regarding US-China trade relations.
On Friday, Donald Trump said that despite the futility of the last round of negotiations, contacts between the United States and China to resolve the conflict would continue and later the United States could cancel previously imposed duties on Chinese goods. At the same time, Trump's economic adviser Larry Kudlow admitted that Americans, not Chinese, would pay higher duties on Chinese goods, so the escalation of the conflict is not beneficial to China or the United States.
Chinese side on Sunday made an official invitation to US Trade Representative Robert Lighthiser and Finance Minister Stephen Mnuchin to visit Beijing to continue the trade negotiations, which have been going on for more than 5 months. Restrained optimism about the positive completion of the trade conflict between the United States and China allowed some investors to abandon defensive assets, which leads to a decrease in their value.
Today, news about trade relations between the United States and China will remain in the spotlight of the market. In addition, the FOMC representatives, Clarida, Rosengren and Kaplan, can have a moderate influence on the trades.
On the chart, the price again met serious resistance at 1287.50, from which the price bounced down, so in the near future we can expect further development of lateral movement in the channel 1279.50-1287.50. It is worth waiting for the formation of a more directional movement only after price breaking the boundaries of the marked range.
Resistance Levels: 1287.50, 1294.00, 1310.00;
Support levels: 1279.50, 1270.00, 1263.50.
The main scenario - the range 1279.50-1287.50.
An alternative scenario - consolidation above 1287.50 and growth to 1294.00.
In general, the market remains neutral news background, which contributes to the development of lateral movement in the channel 1284.00 and 1279.50, so the entry point to the market is to be found on the boundaries of this range.
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