Gold fell to a three month low on Friday, closing at $1458.80 amid optimism that the United States and China would roll back tariffs. The risk on sentiment seemed unhinged even as officials made contradictory statements on the issue, with President Trump stating that he has not yet agreed to rollback tariffs, as the three major U.S stock indexes posted record closing highs and U.S Treasury yields hit 1.97%. Michigan Consumer Sentiment came in lower than expected at 95.7 (vs. 95.9) while consumer expectations beat estimates coming in at 85.9 vs. 84.2. U.S Retail Sales figures and Powell talk to Congress are the two main upcoming events this week.
MACD and RSI Momentum indicators on the 4H chart are bouncing off the oversold area while showing divergence with the market, favoring an intraday correction. On the hourly chart, RSI is heading north of the 50 level, with the 10 and 20 period SMA forming a bullish cross. A correction move is in play, as long as our intraday uptrend is respected.
Support: 1461.09/ 1440.64
Resistance: 1474.34/ 1482.93 /1492.83