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Overview: From last couple of days we are expecting that some neutral to downside signal in the pair where the upside momentum is limited to $1961 level and the downside is limited to $1911 level. So based on the ATR we may say that breakout on either side will give us new buy or sell signal.

The aggressive traders may go for sell but for a very near term target of $1860 and $1820 only. Gold is looking a bid weak in on the daily along with 4 hourly chart. The way bears are reacting it seems like they are approaching the $1860 level and we may see further confirmation below the $1900 level which is a psychological level i.e. multi year’s resistance level now converted as strong support level.

Technical Analysis: From technical prospective we can see that a parabolic top has been formed on the daily chart which is providing us bearish signal. A short term downtrend channel has been formed and heading to downside.

The yellow gold is trading and sustaining below all the major and minor EMA lines on the daily chart and providing us bearish signal for the time being. The 14-day relative strength index (RSI) seems to have regained downside level and a bearish crossover on the MACD indicator is still favoring the bears on daily chart which is pushing us to have bearish view on the gold. Odds are in favor of bears and daily to weekly bias remains bearish on gold as long as $1965 level remains intact. The way gold is trading and moving on the daily chart it seems like $1860 and $1810 level is unfinished target of bears.

What next: The bears are dominating the bulls leading in the game and playing at front foot and it seems like bears are going to continue with this game and will dominate the bulls in near term with full of pace and they are approaching the at $1810 level in coming weeks. The $1860 is make or break level can be considered as key support level followed by $1810 where $1965 is a key resistance level followed by $2000 level.

Trade idea: Based on the chart and study above we would suggest that go for sell at 1920-25 for target of $1870 and $1840 level with strict stop loss of $1970 level.

Gold flat as growth risks offset trade hopes; Powell speech in focus

· Gold was little changed on Wednesday, as worries over global economic outlook offset pressure from signs of progress in U.S.-China trade negotiations, while investors await a speech from U.S. Federal Reserve Chairman Jerome Powell.

· Spot gold was flat at $1,918 per ounce by 0306 GMT. U.S. gold futures hold at $1,924.

· “All eyes are on what Powell says this week... there are still a lot of concerns about the economy and they continue to indicate that rates are going be low and stimulus measures will continue, which should boost gold,” said ANZ analyst Daniel Hynes.

“The U.S.-China trade news overnight that the tensions have eased slightly has dulled investors appetite for safe-havens a bit but obviously there is a lot of water to go under that bridge.”

Adding to investor concerns, a survey from the Conference Board showed U.S. consumer confidence unexpectedly fell in August to hit a six-year low.

· Markets now await Powell’s speech at Jackson Hole on Thursday, which is expected to provide further clarity on the U.S. central bank’s view on inflation and monetary policy.

· The Fed has slashed interest rates near zero and has rolled out a wave of stimulus measures to help the virus-hit economy, driving investors towards the safe-haven metal as it is viewed a hedge against inflation and currency debasement fears.

· “Gold prices have found strong support at around $1,910,” said DailyFx strategist Margaret Yang.

“The mid-to-long-term prospect for gold remains bullish, given the presidential election, U.S.-China trade frictions risks and ultra-loose monetary conditions.”

· Top U.S. and Chinese trade officials reaffirmed their commitment to a phase one trade deal, which has seen China lagging on its obligations to buy American goods, giving a boost to stock markets.

· Elsewhere, silver fell 0.3% to $26.35 per ounce, platinum eased 0.1% to $926, and palladium slipped 0.7% to $2,149.97.