The yellow metal created a bullish inside day candle yesterday, signaling the sell-off from the April 11 high of $1,365 may have run out of steam.
So, the stage looks set for a short-term bull reversal. Gold could gain altitude if the US-China trade talks falter, leading to an ugly trade dispute and a wave of risk aversion in the global equities. Chinese state media have already expressed caution ahead of key trade talks with senior US officials in Beijing (scheduled today).
However, if things work out well between the US and China, then the resulting risk-on in action in the equities could push gold below $1,300.
Gold Technical Levels
As of writing, the metal is trading at $1,309, having hit a session high of $1,310.49 earlier today. A move above $1,313.81 (previous day's high) would open up upside towards $1,313.74 (descending 10-day MA) and $1,319.72 (April 6 low).
On the other hand, a break below $1,308 (200-day MA) would expose support lined up at $1,305 (session low) and $1,300 (psychological support).
Reference: FXStreet
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