Gold rallies to 1-month tops, around $1300 mark amid global flight to safety
| • Sees a dramatic turnaround after China imposes tariffs on $60 billion worth of US goods.
• Declining US bond yields fail to ease the USD bearish pressure and remained supportive.
• Technical buying further collaborates towards accelerating the intraday positive move.
Gold spiked to one-month tops in the last hour, with bulls now eyeing a follow-through momentum beyond the key $1300 psychological mark.
After an initial dip to $1282 area, the precious metal witnessed a dramatic intraday turnaround and caught some aggressive bids in reaction to China's announcement to impose retaliatory tariffs on $60 billion worth of US goods.
The news added to growing fears about a full-blown trade war between the world's two largest economies, which dented the already weaker global risk sentiment and underpinned the precious metal's relative safe-haven status.
This coupled with a fresh wave of US Dollar selling, falling further below the 97.00 handle to its lowest level in over three-week, provided an additional boost to the dollar-denominated and remained supportive.
Meanwhile, the ongoing slump in the US Treasury bond yields - amid the global flight to safety, also did little to provide any respite to the USD bulls or hinder the non-yielding yellow metal's upsurge to the $1300 neighbourhood.
Adding to this, possibilities of some short-term trading stops being triggered on a sustained move beyond the $1288-90 supply zone further collaborated towards accelerating the move to the highest level since April 11.
In absence of any major market moving economic releases from the US, the commodity remains at the mercy of broader market risk sentiment/incoming trade-related headlines and the USD price dynamics.
Technical levels to watch
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