Gold aims to revisit 50-day SMA amid pullback in safe-havens
|- Traders started preferring riskier assets on comments from the US President and his Chinese counterpart.
- The US data and uncertainty surrounding the US-China trade deal can continue hurting the safe-havens.
Latest comments from the US President and his Chinese counterpart seemed to have helped market risk sentiment as Gold is on the rounds near the intra-day low of $1295.35 during early Wednesday.
Not only the US President Donald Trump’s tweets portraying positive relations with China, but statements from China’s President Xi Jinping also promoted openness in trade and built market optimism surrounding the US-China trade deal.
As a result, investors showed little reaction to sluggish retail sales and industrial production numbers from the dragon nation.
However, recent updates from China showed its readiness to drop support for the US energy exports, which in turn signal presence on a trade rift between the world’s two largest economies.
The barometer of global risk sentiment, 10-year US treasury yield, seems little changed at the yesterday’s close of 2.42% during the initial Asian session.
In addition to the US-China developments, the US economic calendar also has some important details like retail sales, industrial production and empire state manufacturing that can offer active trading session ahead.
Technical Analysis
50-day simple moving average (SMA) level near $1292 can act as immediate support, a break of which highlights lower-line of the short-term “rising wedge” formation that stands around $1286. Should prices slip beneath $1286, the bearish pattern gets confirmation to revisit $1266.50¬/$1266 area including latest lows.
Meanwhile, $1303 and pattern resistance near $1306 may restrict the bullion’s upside ahead of fuelling it to $1319 and March month high around $1325.
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