Gold tumbles as positive signals from trade talks boost risk appetite
Spot gold is holding in red for the second straight day and fell to the lowest level in one week ($1479) on Friday.
Optimistic tones from top US/China trade negotiations, with good signals for possible solutions, prompted investors into riskier assets and put safe-havens on hold.
Daily techs turned to full bearish mode, following Thursday’s penetration of daily cloud, loss of psychological $1500 support and close below pivotal support at $1496 (Fibo 38.2% of $1459/$1519 upleg).
Today’s bearish extension cracked next pivot at $1482 (Fibo 61.8%), close below which would add to bearish signals, as the yellow metal is on track for strong bearish weekly close and forming bearish engulfing pattern.
Below $1482, bears would look for $1473 (Fibo 76.4%) and more significant daily cloud base ($1469).
Broken daily Tenkan-sen ($1489), guarding $1500 level and daily cloud top ($1505).
Res: 1482; 1489; 1496; 1500
Sup: 1473; 1469; 1464; 1459