Gold in a bit of trouble as yields track higher on the day

Technical Analysis

Gold is threatening a firm break below its 200-hour moving average

Gold vs yields

Gold is down to session lows for the day as bonds see added selling, resulting in a move higher across yen pairs as noted earlier as well.

Amid some profit-taking activity in US trading on Friday, gold saw a bit of a recovery but has been steadily weaker in the new week ahead of the US-China trade deal signing.

Markets are keeping a mildly more positive risk tone and that continues to reverberate in European morning trade.

Gold H1 13-01

Notably for gold, price is threatening a firm break of the 200-hour MA (blue line) after sellers have failed on a couple of attempts in doing so over the past few trading days.

The recovery on Friday saw price action rejected at the 100-hour MA (red line) and now sellers look to seize near-term control in trying to angle for a move lower.

The key near-term level to watch out for now will be the 9 January low @ $ 1,540.33. A break below that should accelerate losses for gold. That said, keep an eye out on US-China trade developments – especially the details of the deal – this week.

Any setback on that end could give reason for gold buyers to step back into the picture.

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