Gold has been experiencing downward pressure as of late from safe haven support from the US dollar and the treasuries following President Trump’s decision to impose tariffs on $200 billion worth of Chinese imports. China has threatened with retaliatory measures with the first tariffs scheduled to come into effect on July 6. Further, China being one of the largest consumers of gold, has threatened demand. Gold may find some support from a flight to safety sentiment but may be largely dependent upon a pullback from the US dollar following the cross of the 200-day moving average indicating a ‘death cross’ or a change in the directional bias of the market. Technically, the precious metal is oversold with the next downside target at the December 17 low of 1251.90. Support is seen around 1294 with gold appearing potentially range bound between 1250 and 1290.
Gold Aug ’18 Daily Chart