The gold market has sold off on positive U.S./China trade talk progress ever since the April contract’s recent high of 1349.8 on February 20th. The gold market has seen its biggest sell-off in recent months, trading to a low of 1283.8 yesterday before closing at 1287.7. Support came in on fundamental news of both China and India increasing their gold holdings. Bearish news came in with both Russia and Australia increasing production, with Australia’s production hitting an all-time high. The stock market and the U.S. dollar have both been trending higher but are reaching resistance levels and any weakness in either should support gold. Although gold has been trending lower for the past two and a half weeks, the April contract is right at a support level of 1284 and momentum studies are showing oversold levels. This could be an area where value seekers come in as buyers offering additional support and reversing the trend back to the upside. A break of this support would continue the trend to the downside.
Gold Apr ’19 Daily Chart
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