Spot gold price fell in early US trading on Thursday following latest news that China is willing to reach agreement with the US and prevent further escalation of trade conflict.
The yellow metal traded within the range above psychological $1500 level before accelerating lower, in attempts to make a clear break above daily cloud (top of the cloud lays at $1502), but the action stalled again on fresh risk appetite that was sparked by optimistic tones from top-level US/China talks which started today.
Fresh weakness through cloud top and $1500 support also broke pivot at $1496 (Fibo 38.2% of $1459/$1519 upleg) that opens way for test of another significant level at $1487 (8 Oct trough), break of which would spark further easing.
The latest news soured near-term sentiment, with rising bearish momentum and daily indicators (stochastic/MA’s) turning into bearish setup and adding to negative signals. Close below daily cloud top ($1502) is needed to maintain bearish bias.
Res: 1500; 1502; 1507; 1512
Sup: 1493; 1489; 1487; 1482
