Gold rebounded in early trading on Monday as it stabilized above the bullish trend line after hitting its lowest level in more than a week at $3293.

Meanwhile, gold is trading near the weekly pivot point at $3337, looking forward to penetrating through. A sustained move above the aforesaid level may push prices to resume their upward march towards the first weekly support level of $3375, then the second level at $3441. 

On the downside side, if gold drops beneath the bullish trend line, it could put pressure on the price to retreat towards the first support level at $3253. A break below the first support could dump prices towards $3234.

From a fundamental standpoint, market focus will center on U.S.-China trade talks in London today, where senior officials aim to resolve ongoing disputes following mutual accusations of violating last month’s Geneva agreement.

Meanwhile, there is some optimism among investors that Washington and Beijing could reach an agreement over rare-earth minerals and advanced technology.

On the economic data front, the U.S. consumer price index for May will be carefully watched. Analysts expect annual CPI to rise to 2.5%, edging up from a 2.3% soar in April. A higher-than-expected reading could prompt the Federal Reserve to refrain from cutting interest rates in the near future.