Gold opened the second half of the year by falling below $1,400 on growing expectations of a breakthrough in the talks on the trade war between US and China. During the meeting between Donald Trump and Xi Jinping at the G20 it was clear that both sides are willing to further negotiate in order to reach a deal.
Investors are now focused on the US job data later this week, as this could be seen – if below expectations – as an indicator confirming the necessity of rate cuts by the Fed. But after this strong correction there are good chances that gold might gain strength once again. From a technical point of view, gold has fallen below $1,400, testing the area of $1,380, which is now the first key support level to monitor.
Photo by Carlos Muza.
