Gold is bleeding for a fourth day in a row, with the prices dipped below the 100-DMA again and registered a daily low around $1,283 so far. The bullion was rejected from highs above $1,310 last week and has been trending lower since then.
Global financial markets look undecided on risk appetite but US-China trade optimism reduces the safe-haven appeal of the precious metal after US Treasury Secretary Steven Mnuchin said that talks were progressing well and the two countries might be “close to the final round” of their trade negotiations.
Also, Japan and the U.S. started the first round of trade negotiations in Washington yesterday, which adds to the bullish pressure on global stocks. Against this backdrop, the bullion struggles to benefit from a weaker dollar.
Technically, gold needs to stay above the $1,280 figure in order to avoid a more aggressive sell-off. Only above the $1,300 barrier, the short-term technical outlook will improve somehow.