Gold stabilized during today’s session as it struggled to cut its losses after posting a decline for three consecutive sessions. Meanwhile, gold is looking for further positive momentum to regain its upward march in the near term.

Gold is currently trading near the breached bullish channel’s lower line, looking to reclaim the weekly pivot point at $3367, noting that a sustained move above it could push prices towards $3409 then $3480.

On the downside, if gold fails to stabilize above the lower line of the channel, it will lose its positive momentum and continue its downward correction towards the first support level at $3295. If the price stabilizes below the first support, it may resume its decline to the second support level at $3253.

From a fundamental standpoint, the United States and European Union had reached a landmark trade agreement that includes a 15% tariff on EU goods entering the United States.

According to Trump, the European Union has committed to purchasing $750 billion worth of energy from the United States. He also stated that the EU has agreed to make $600 billion in investments in the United States.

On the economic data front, July’s non-farm payrolls report and a reading of inflation closely monitored by the Federal Reserve are scheduled to be released this week, while the Fed will announce its interest rate decision on Wednesday.

Fed officials are widely anticipated to leave borrowing costs unchanged, even as President Donald Trump has placed intensifying pressure on the central bank’s Chair Jerome Powell in particular to quicken the process of slashing borrowing cost.

Not only will market participants carefully watch Powell’s comments in the press conference following the interest rate decision, but Trump will also be watching to see if the Fed Chair has changed his guidance after the latest trade deals between the U.S. and its major trading partners.