Gold reverses lower after touching a four-week high

Gold looked like it might break out earlier today on strong European and Asia buying but the selling has been steady in US trade and picked up in the last two hours.

The reversal coincides with a turn higher in US Treasury yields and optimism about US-China trade following a call between Trump and Xi. There were no meaningful announcements following the call but the sides agreed to a round of meetings led by top deputies. The market is optimistic that it means the path to lower trade tensions is intact.

Gold has largely been a trade war barometer this year with prices exploding after the 'Liberation Day' tariffs and hitting an all time high at $3500. Prices backed off after Trump delayed them but gold has held above pre-tariff levels. Gold could also be getting a boost from Ukraine and Iran angst and US deficit concerns.

Today's price action is disappointing for the bulls though. Yesterday I highlighted the importance of breaking the May high of $3437 in order to extend the uptrend.