Gold (XAU) Price, News and Chart:
- US-North Korea fail to secure a deal.
- Initial resistance (R1) looks likely to be tested again.
US President Trump produced a sharp U-turn earlier today in Vietnam and announced that talks with North Korea had failed to produce a deal, in contrast to earlier indications that an agreement was close to being signed-off. According to reports US President Trump refused North Korea’s demands for complete sanctions relief if they stopped producing materials for nuclear bombs at their Yongbyon facility. While the deal may still go through later, possibly in a revised format, any failure to make a high-profile deal will always weigh on risk sentiment.
Gold has backed off its recent highs and has been unable to make a sustained break of R1 ($1,328/oz.) this week with the precious metal veering back towards, and through $1,321/oz. to S1 at $1,315.5/oz. This range continues to hold sway for now and will need a fresh macro-stimulus to break the current set-up.
Gold Daily Price Chart (February 6 -28, 2019)
Retail traders are 70.6% net-long Gold according to the latest IC Client Sentiment Data, a bearish contrarian indicator. Recent changes in daily and weekly sentiment however give us a stronger bearish trading bias.