Gold continues to consolidate after a momentum decline at the end of March. Since then, the asset has been trading below the psychological level of $1300/oz. It is mainly moving in the area of $1285-1295. A consolidation after a bearish impulse looks like a falling wedge, which is a reversal pattern. Apparently, the pattern has not yet been fully formed yet and the consolidation is going to continue. In this case, one can expect a local drop to $1285, which will be followed by growth.
The fundamental background for this market has remained unchanged for some time: a trade war between the United States and China, Brexit and a possible global economic recession.
There are reasons to believe that the PRC and USA have agreed on "90% of controversial issues" and are one step closer to the trade agreement. In the near future, China’s Vice Premier will arrive in Washington for further discussion.
Theresa May said she would seek a new Brexit postponement. PM stressed that this shift will be “as short as possible” (probably before May 22), in order to avoid the UK’s participation in European elections.