After updating a new annual maximum of around $1510 per ounce on the spot chart, gold is being traded in a downward price channel with a width of $17. After an impulsive and aggressive uptrend, this channel formed a flag, which is a trend continuation signal. The price range is locally concentrated within the borders of $1490-1507, however, after the consolidation is over, new bullish movements and updates of the highs can be expected.
Market tensions and concerns over the effects of a trade war between the US and China continue to rise. Goldman Sachs analysts recently lowered the forecast for US GDP growth for the last quarter of 2019 down to 1.8 percent, increasing the impact of the trade war on growth. The bank said that they no longer expect deal signing between the two largest economies in the world until the US presidential election in 2020. Such a factor may become a driver of additional capital flow into safe-haven assets, and above all, to the gold.