Gold prices continue to fall early this morning as fourth-quarter US GDP data topped expectations. The data lifted treasury bond yields and the US Dollar, in turn making the non-interest-bearing gold less attractive. Despite getting support from the failed deal between the US and North Korea, Gold prices fell even more after investors focused on the US-China talks. White House economic advisor Larry Kudlow told CNBC on Thursday in an interview that Sino-US trade talks are making "fantastic" progress.
Gold prices broke to the downside after violating the long term trend line presented on the chart to the downside. The price is currently trading below the 1310 level with a declining bearish momentum. This downward move is nowhere near stopping on the short term as a reversal sign has been triggered. We will be focusing mainly today on the $1303.07 support level.
Support: 1307.09 / 1303.07
Resistance: 1312.38 / 1316.78