Gold prices steadied this morning after the United States and China signed a preliminary trade deal, and as investors remained concerned despite Trump celebrating the preliminary deal as a massive victory. In reality, though, many questions remain open and this could just be the beginning for now. The current agreement basically only says that China will increase its imports from the US by $200 Bio within the next two years and protects intellectual property. The US is leaving most of the tariffs in play which of course will likely lead to further uncertainty as either side has agreed to not increase tariffs any more for now
XAU/USD can be seen as a rebound if the resistance area can be broken. We support a breakout move above the $1557.00 level. The market could retrace higher towards the $1575.00 area should we see negative news from the stock markets today. As the $1545.00 support area has been tested successfully we could be close to a jump higher again. It has also been utterly quiet around Iran in recent days, and if we get any provocation from either party on that front, we could see XAU/USD breaking significantly higher.