From a technical perspective, Gold failed twice off the $1,550 to $1,560 area on the creating a pattern to the downside, not quite $1,500 but still moving lower. On the weekly chart, we have not seen two weeks of candles since April, further highlighting possible correction.
Our outlook is the movement down to $1,500. From there we could see continual correction as it may hold until more U.S. - China data comes out. If a deal is made we could see swift movement lower with more risk-on investors moving to equities. However, if we don’t break through the 4-month-old channel low, we can still see rallies upwards to $1,600 before a lower move.
Short term play is a bounce off of $1,500.