S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico MarketFacts
- The U.S. and China reached a preliminary agreement during the weekend meeting on trade terms.
- Gold has formed a local double top pattern.
Recommendation:
Short position at market price
- TP1: 3140
- SL: 3320
Opinion:
The trade agreement between the U.S. and China, which includes a significant reduction in tariffs, represents a clear signal of geopolitical de-escalation—one that had supported demand for safe-haven assets like gold for many months. The reduction of tariffs from extremely high levels (125% → 10% and 145% → 30%) is calming financial markets, as evidenced by strong stock index gains and a sharp dollar rally. Additionally, the break of technical support in gold and the formation of a local double top pattern indicate a potential shift in sentiment. Gold, which had previously rallied mainly due to global tensions and a weakening USD, is down over 3% today, which could signal the beginning of a larger downward move.
Based on the above arguments, we recommend entering a short position at market price. At the same time, we advise setting a stop-loss order to minimize the risk of potential loss.
Source: xStation 5
Methodology:
The recommendation is based on a fundamental analysis of the gold market, its correlation with other financial markets, and technical chart analysis. Additionally, our decision was influenced by the latest political developments, including the high-level meeting between China and the U.S. over the weekend. Target levels were determined using classic support and resistance zones as well as Price Action analysis.
