Gold turns lower again, cracks $3300 in third day of selling

The FX market is still asleep to start the week with moves so far at less than 10 pips but gold is sending some signals. It's down $11 to $3298 after initially rising $8.

This is the third day of gold selling and it comes after signs of US-China trade talks last week were later confirmed by Trump. The sides will meet in London this week and Trump offered some optimistic hints.

I see gold as mainly a barometer for the trade war at the moment and I think we will see some US deals in the week ahead. The G7 is coming up June 15-17 with Trump traveling to Canada and I expect he will want to make some announcements before then. China isn't going to get done in that timeline but there could be some real progress with the teams slated to be in London all week. In addition, there are strong hints that a deal with Canada is possible this week.

I spoke with Kitco on Friday for their gold survey and it showed a near-even divide between bulls and bears.

The hope is that Asian buyers overwhelm US sellers but we're not seeing that so far today.