News

Gold moves higher start of week as Brexit and trade wars keep markets in risk-off

  • Spot Gold prices have risen at the start of the week with plenty of uncertainty.
  • Meanwhile, Brexit is back to the fore this week.

Spot Gold prices have risen at the start of the week with plenty of uncertainty bounding its way around on the geopolitical front, including Hong Kong protests, Brexit and US/Sino trade wars. An ounce of gold is currently trading at $1,530.50 having travelled between a range of $1,519.52 and $1,534.12.

With respect to Hong Kong, weekend violence and clashes between the protestors and police have raised concerns on an international humanitarian front which could become a factor in the stand-off between Washington and Beijing at a time where recent escalations have already lead to a breakdown in talks. It has been reported in recent trade that neither side has been able to agree on the timings of the next round of negotiations.

Eyes on Brexit

Meanwhile, Brexit is back to the fore this week with Parliament returning from summer recess. Uncertainties here are stemming from rebel MP's in the conservative party wanting to block a no-deal Brexit. Boris Johnson was considering seeking an early general election - Tory rebels have been warned that supporters for the legislation could face being expelled from the party and deselected. Johnson is due to make a statement in Downing Street at about 1800 BST setting out the choices facing MPs.

Elsewhere, we will be back to good old fashioned central bank policies this month with a number of meetings where central bankers will decide on global interest rates. A major focus stays with the Federal Reserve and the US Dollar. Leading into the meeting, we have a number of data, including Manufacturing PMIs and Nonfarm Payrolls. We also have Fed' speakers, including Fed Chair Powell, NY Fed's Williams, and voters Evans and Rosengren will take the stage next week before the blackout period starts. "We don't anticipate Chair Powell or Williams to deviate much from the Jackson Hole mantra of sustaining the current expansion; while Evans and Rosengren will likely state the dovish and hawkish case, respectively," analysts at TD Securities explained. 

Gold levels

While holding in the 1,520-1,525 zone, (1517 was the low) which bulls have managed so far, then 1,558 opens 1,590 as the 127.2% Fibo target area. Bulls can target the 78.6% Fibo of the 2011 to YTD range located in the 1,730s ahead of the triple-top peaks of the 1,800s.

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.