Last week, progress in trade talks between the U.S. and China gave the market a sense of relief, which led to stronger “risk-on” mood and selling of gold.
If trade talks between countries like Japan and the U.S. continue to show progress this week, gold selling may increase even more.
However, the results of these talks can still be unpredictable, so the market remains uncertain. Because of that, gold prices could still go up again easily, and the price drop may be limited.
From a technical point of view, gold once fell below the “neckline” of a double top pattern around 3200 USD, but it managed to close just above that level.
If the price clearly goes below this level, the next strong support level will be around 3090 USD, which is a 61.8% retracement.
This week’s expected price range for gold (XAU/USD): 3090 – 3280 USD
Note: This information does not guarantee any profits. Please make your own decisions when trading.