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