Bullion took a nosedive after Beijing and Washington started a new round of negotiations on Thursday. US officials indicated they would lift some tariffs on Chinese goods as a gesture, while leaving the rest as bargaining chips. Improved sentiment would keep pressure on the precious metal. Meanwhile, the dollar’s recovery is adding insult to injury, since the greenback offers higher yields than the metal.
On the technical side, bullion in drifting towards the daily support of 1280. A failure to hold this major support level could reverse the bullish course. 1295 is the immediate resistance for the day.
The sentiment-price correlation chart shows the sentiment testing the neutral line. Daily news sentiment is moving lower and in 50% of the last 10 occurrences price has fallen within 6 days.