Gold is faring a little better today, sitting near flat levels after Friday losses
The downside move on Friday wasn’t as profound as sellers would’ve hoped as it failed to take out support just under the $1,480 level and buyers are trying to work their way back towards the $1,500 handle currently.
The putting off of escalation in the trade war is certainly welcome news for risk assets but the lack of substantive progress – in my view – will continue to allow gold to find some tailwind in the bigger picture.
As it stands, sellers are still in near-term control for gold as buyers need to drive price back above $1,500 to feel more comfortable about chasing a break higher.
In my view, the temporary reprieve may lend to some choppiness in gold in the short-term but the chart tells us that patience is key in chasing the next big move in gold:
There’s a noticeable wedge being formed right now and I reckon the next big trade for bullion would be to go with a break on either side.