On Monday, the safe-haven metal prices rose but remain below the level of $1500 as the United States and China completed one round of trade meetings, and the United States planned to delay tariff on Chinese goods this week. Gold contract slipped 0.2% to trade at $1,491.35.
The U.S. President Donald Trump sketched the first round of a deal to settle the protracted Sino-U.S. trade war and halted a vulnerable tariff hike, the most significant step by the two nations in 15 months.
In return for the U.S. decision to delay tariff, China agreed to buy $40 billion and $50 billion in U.S. agricultural goods. More steps will be reached in the second phase, the president said.
The safe-haven metal prices swiftly dropped after the report came that the investors adopted the risky assets and dropped the safe-havens.
Technically, the Fibonacci retracement levels are playing a significant role. As you can see on the 2-hour chart above, the XAU/USD is trading right below the 38.2% retracement. This level used to work as resistance last week, but now, the same level is working as a resistance.
The closing of a 2-hour candle below 1,496 is suggesting bearish bias among traders. On the lower side, gold may find support at 1,486 and 1,480 level today.
Daily Support and Resistance
Pivot Point 1488.82
Consider staying bearish below 1,494 areas to target 1,487 and 1,482 today. On the flip side, buying can be seen in over 1,496 areas.
All the best!