Bullion remains under pressure as markets shifted to a risk-on mode. Washington indicated progress in the trade negotiations with China. President Trump was announced to meet Chinese Vice Premier later today and hopes are high that an agreement might be reached soon. On the other side of the Atlantic, Brexit extension has eased fear that a chaotic divorce could be averted next week. Prime Minister May’s overture towards the opposition might lead to a soft Brexit.
On the technical side, gold is testing the daily support zone around 1285. A break below could send the price to 1277. 1300 is the immediate resistance on the upside.
The sentiment-price correlation chart shows the sentiment struggling beneath the neutral line. Daily news sentiment is moving lower and in 60% of the last 10 occurrences price has fallen within 6 days.