Discussions about the roadmap over the agreement between the US and China are underway and President Trump called them "very productive". What's more, later Trump even announced interventions on the arrest of Meng Wanzhou, head of finance Huawei, a Chinese giant in the production of smartphones.
Trump told the agency that phone calls are being held with Beijing and he will not raise tariffs until he is sure about the chances of a deal. What's more, China is considering cutting tariffs on US cars from 40 to 15 percent. Nevertheless, later that day, US parliamentarians proposed a law that would prohibit the sale of American products to Chinese companies that violate the export ban or sanctions imposed. The global investors remain somewhat confused after these situations, but the general mood is slowly improving.
Let's now take a look at the Gold technical picture at the daily time frame. The market is still going up and the price has almost hit the 61% Fibo retracement at the level of $1,286. The local high was made at the level of $1,281, so it is very close to this level. It is worth keeping an eye on the 61% Fibo to see how the market will react on this level as the momentum is still strong and positive, but the market conditions are now extremely overbought. The nearest technical support is seen at the level of $1,261.
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