Gold prices struggled to challenge the 100-DMA earlier this week, which continues to serve as the key barrier on the way to the $1,500 psychological level. On Friday, the precious metal shows a bearish bias but stays positive in the weekly charts. Market sentiment has improved today, which caps the safe-haven gold demand amid investor optimism surrounding the potential trade deal and OPEC+ gathering.
Both China and the US continue to signal further progress towards a phase one deal. Still, there are no any details on the tariffs, which dents the upside in risky assets. Meanwhile, OPEC+ countries are discussing output cuts by additional 500,000 barrels per day, along with extension of the existing deal, which is positive for the oil market and high-yielders in general. Against this backdrop, the dollar sees the downside pressure against major rivals, which in turn curbs the bearish bias in gold prices.
In the short term, the yellow metal will likely remain under pressure amid market optimism. But the bullion may yet jump to the recent highs around $1,485 should the trade uncertainty reemerge any time soon. When and if the US and China strike an interim deal, gold could come under the selling pressure though.