Gold sellers cheer US-China trade optimism against all odds
|- Gold stays below 50-day EMA amid trade positive sentiment.
- Sellers ignore uncertainties surrounding Brexit and geopolitical tension in Syria.
With the US and China near to end the two-year-old trade tussle, Gold bears give little importance to doubts over soft Brexit and tension surrounding Syria while flashing $1,484.70 as a quote during Monday’s Asian session.
The yellow metal recently witnessed downside pressure after the United States (US) and Chinese diplomats agreed over the first part of the trade deal on late-Thursday. The same propelled bond yields and equities to multi-week highs while cutting down on markets’ safe-haven demand.
Adding to the trade optimism is a recent tweet from US President Donald Trump who confirmed no hike in the US trade tariff, from 25% to 30%, on Chinese goods that was supposed to get active from October 15.
With this, gold traders gave little importance to questions surrounding the United Kingdom’s (UK) exit from the European Union (EU) and geopolitical problems concerning Syria after Turkey’s offensive in the region. It should also be noted that the recent weakness in the US Dollar (USD) also fails to restore confidence of the precious metal buyers.
While trade/political headlines will keep directing near-term moves of the Bullion, holidays in Japan, the US and Canada might restrict the market’s reaction to any fresh news.
Technical Analysis
Unless breaking a downward-sloping trend-line since September 04, at $1,513 now, prices are less likely to aim for $1,535 and $1,558 resistances, which in turn highlights the importance of an area between monthly bottom near to $1,455.50 and July month high around $1,452.70.
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