Gold seesaws near $1329 amid changing risk sentiment
|- Warnings to China/Mexico disturb the latest improvement in risk tone.
- Lack of data highlights political news for fresh impulse.
Given the recent news reports flashing mixed signals concerning the US-China trade deal, swift in risk sentiment helps the gold prices to recover yesterday’s losses while taking the rounds near $1329 during early Tuesday.
While successful avoidance of Mexican tariffs and likely break of trade impasse at G20 pleased risk takers on Monday, recent warnings from the US lawmakers to Mexico and China seem directing immediate bullion moves.
The US President Donald Trump threatened to levy fresh tariffs on China in case the dragon nation fails to move forward on trade talks at the global leaders’ meet in Japan. Mr. Trump also warned Mexico to perform the undisclosed part of the latest deal.
Elsewhere, Chinese media kept criticizing the US while knowing facts from the China General Chamber of Commerce.
The 10-Year yield of the US treasury is a generally followed indicator of market risk tone. The gauge yesterday grew nearly 6 basis points to 2.14% while showing small gain to 2.15% while writing.
Investors may now look for further clues relating to how the US and China might react when they face each other at G20 after a short break and much drama. It should also be noted that global economic calendar has fewer things to please momentum traders.
Technical Analysis
Sustained break of March month high, around $1327.80, becomes necessary for the safe haven to revisit $1311 and 21-day simple moving average near $1300, failure to do so can again propel the metal to aim for $1350.
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.