Gold in search of a firm direction, stuck in a range around $1480 region
|- Reemerging US-China trade tensions extended some support.
- A subdued USD demand further underpinned the commodity.
- The upside remains capped ahead of US monthly retail sales.
Gold lacked any firm directional bias and seesawed between tepid gains/minor losses through the early European session on Wednesday.
Following the previous session's intraday pullback, the precious metal managed to find some support amid reviving safe-haven demand on the back of fresh trade tensions between the world's two largest economies. China now reportedly wants the US to roll back tariffs before agreeing to buy $50 billion of American agricultural products under the recent partial trade deal agreed last week.
Bulls lacked strong conviction
Adding to this, China criticized the new US legislation, which provides sanctions against officials responsible for undermining fundamental freedoms and autonomy in Hong Kong. China also vowed to take countermeasures against the US, which further dampened prospects for an immediate resolution of the prolong US-China trade disputes and prompted some safe-haven buying.
Meanwhile, a subdued US Dollar demand further underpinned the dollar-denominated commodity and remained supportive. The ongoing fall in the US Treasury bond yields, amid expectations that the Fed will cut interest rates again in October, kept the USD bulls on the defensive, though did little to provide any meaningful bullish impetus to the non-yielding yellow metal.
Hence, it will be prudent to wait for a strong buying interest before traders start positioning for any near-term appreciating move. In the meantime, Wednesday’s US economic docket – highlighting the release of monthly retail sales data – will now be looked upon for some short-term trading impetus later during the early North-American session.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.