Spot gold fell $10 in European trading on Thursday on fresh risk mode, sparked by optimistic news regarding US/China trade talks.
Fresh weakness erased Wednesday’s recovery and pressures again daily cloud base ($1478), cracked on Tuesday’s 1.7% fall.
Renewed demand for riskier assets soured gold’s near-term sentiment, as bearish daily studies maintain pressure and Tuesday’s long bearish daily candle weighs.
Break below daily cloud would generate stronger bearish signal for extension of bear-leg from $1515 (1 Nov high) but traders look for further clarification of development in trade talks, following optimistic comments released this morning, to have clearer direction signal.
Converged 20/30 DMA’s (1494) mark solid resistance which should keep the upside protected and maintain bearish bias.
Only sustained break above $1500 pivot would neutralize bears and shift focus higher.
Res: 1489, 1494, 1497, 1500
Sup: 1481, 1479, 1476, 1473