Gold extends gains amid US–China trade talks and upcoming US CPI

After oscillating between gains and losses throughout the European session, Gold extended its gains towards the resistance of $3340 as market turned cautious with traders awaiting further details from the ongoing negotiations between USA and China in London. 
On the geopolitical front, Russia launched 500 drones at Ukraine, marking its biggest overnight bombardment of the war. This has caused investors to flock to safe-haven assets like Gold, boosting its demand. Adding to the gains, traders are pricing in a 60% probability of Federal Reserve cutting the interest rate at its September monetary policy meeting. Investors keep their eyes on the upcoming CPI and PPI numbers from the US to gain insights into the inflation which could further influence Fed's decision. 

XAU/USD TECHNICAL OVERVIEW

Technical Structure: The daily chart of Gold showcases formation of a Spinning Top candlestick after a downtrend which signals a potential shift in the direction of prices. Prices have successfully found strong support from 20- period simple moving average on the daily timeframe, indicating that bullish momentum would persist. Adding to the bullish bias, the 4-Hour chart displays the formation of a Double Bottom pattern, which has historically proven to provide bullish momentum to the yellow metal. It is coupled up with an inverted head and shoulder pattern on 15-Minute timeframe, reinforcing bullish bias. 

Intraday Trend/ Intraday Strategy: The intraday trend for gold remains bullish and favours the strategy of Buying on Support and Buying on Resistance Breakout.

Weekly Trend: Bullish to Neutral

Major Resistance: 3340, 3345, 3360

Major Support: 3330, 3320, 3300