Gold recovers from 3-month lows, up little around $1465 level
|- Trump’s not so optimistic trade-related remarks helped regain some traction.
- Political unrest in Hong Kong further underpinned traditional safe-haven assets.
Gold prices edged higher on the first day of a new trading week and recovered a part of the previous session's slide to three-month lows, though lacked any strong bullish conviction.
The US President Donald Trump on Friday said that reports on the rollback of tariffs on Chinese goods was incorrect and poured cold water on the recent trade optimism. It is worth recalling that officials from both sides said late last week that China and the United States have agreed to roll back tariffs on each others' goods in a "phase one" trade deal if it is completed.
A combination of factors extend some support
The not so optimistic remarks, coupled with political unrest in Hong Kong weighed on the global risk sentiment and extended some support to traditional safe-haven assets – including Gold. However, the fact that Trump did not completely rule out a deal with China and left the door open to some tariff rollbacks kept a lid on any strong follow-through positive move.
Meanwhile, the US Dollar was seen consolidating the recent bullish run to multi-week tops, supported by a strong upsurge in the US Treasury bond yields, and did little to provide any meaningful impetus to the dollar-denominated commodity. Investors also seemed reluctant to place any aggressive bids on the back of a bank holiday in the US in observance of Veterans Day.
Moving ahead, this week's other US economic releases, including the latest consumer inflation figures and monthly retail sales data will now be looked upon for a fresh impetus. This along with the Fed Chair Jerome Powell's two-day testimony on Wednesday and Thursday might further collaborate towards determining the commodity's next leg of a directional move.
Technical levels to watch
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