Gold has been on a record run for the past two weeks and touched a record $3500 in Asian trading today. The big figure was evidently a cue for some bulls to take profits and that's been the trend in US trade with it falling all the way to $3373.

Even with the nearly $130 turnaround, gold is still up $50 on the week.

The chart shows the potential for profit taking ahead and that could mean a fall as low as $3150 and a retest of the early-April high. That would be the first level of support followed by $3000. To get back through the big figure, I suspect we would need to see real progress on reversing trade tension, likely in the form of deals that completely remove tariffs and provide some certainty.

gold daily
gold daily

The test for now is Asia. That's been the main source of buying all year and it will be critical to watch if Asian bids emerge later and buy the dip. If not, expect to see more selling in North America tomorrow.

Source: Forex Live