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A softer Dollar trade started the week on the Moody’s downgrade of America’s last AAA credit rating. Whilst the overall reaction across US Markets was fairly muted, the news was sufficient to drive safe haven demand once again.

US Treasury Secretary said in a recent interview on Sunday that tariffs would revert back to Liberation day levels (April 2nd) if countries failed to negotiate with America in “good faith”.  The lingering uncertainty was sufficient to drive buying into the yellow metal on Monday’s trade.

From a technical standpoint, Spot Gold YVWAP, failed to accept 8EMA at market close, the bullish momentum retreated off the highs and closed the day just below VWAP. This is a key risk area that the Bulls must accept in order to regain any near term bullish momentum. PSAR remains bearish. If Gold is unable to establish direction it’s likely to consolidate between SUPP the 50EMA (Daily) and $2348, $2350 levels and $2353. Gold must find legs on either side of these areas to establish a new short term direction.

Lower TF 15M Globex we already see this consolidation with a balanced range formed.

(Click on image to enlarge)

(Click on image to enlarge)

(Click on image to enlarge)

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