The XAU/USD pair started the new week under bearish pressure and erased a large portion of last week's gains. Although the pair staged a modest rebound during the first half of the day yesterday, it failed to gather further strength and, once again, turned south. The 10-year US T-bond yield gained traction on Monday and erased last Friday's losses by adding nearly 1% and pointed out to improved market sentiment which makes it difficult for the precious metal to find demand as a safe-haven. However, the yellow metal prices gained during today's Asian session on the back of weaker-than-expected China PMI data for the month of April. Traders are also keenly eyeing China-US trade talks as the US and China are ready to kick off the latest round of negotiations this week in Beijing.
Gold prices edged lower during yesterday's session as they headed towards the $1280 level after loosing traction. Price is however regaining some momentum this morning as its currently hovering around the 1282.19 level. If the 1280 level will be strong enough to hold price above it, bulls will take advantage and we will be focusing on the upside again, especially on the previous highs.
Support: 1282.19/ 1280.11
Resistance: 1285.35/ 1288.35