Gold: Strong near multi-year top amid upbeat safe-haven demand
|- Gold holds the top spot in buyers list as the US treasury yields trigger global recession fears.
- Mixed signals from trade/political headlines also add to the safe-haven demand.
With the fears of global economic slowdown acquiring the front seat of the market story, Gold takes the bids to $1521 heading into the European session on Thursday.
Not only inversion of the US 10-year to two-year Treasury yields but record low yields of 30-year notes also question market optimism surrounding latest turn in the US-China trade relation.
Mostly cited reason for investors’ rush to risk-safety targets disappointing activity numbers from China and the EU while Hong Kong political plays and global easy monetary policy adds to the line. Challenging the move is the Reuters’ news that Chinese imports of Gold have are likely down by 300-500 tonnes since May 2019.
Traders may now look forward to the busy economic calendar comprising the US/UK Retail Sales, the US Industrial Production, Initial Jobless Claims and Philadelphia Fed Manufacturing Survey.
The US President Donald Trump’s reaction to the latest criticism from Hong Kong and further action on a trade deal with China will also keep investors busy during the day.
Technical Analysis
FXStreet Analyst, Ross J. Burland, expects further increase in the yellow metal’s prices to fresh 2019 high:
The price of the yellow metal has fliped back in a bullish trend, reversing losses seen in the prior session. The trend has been in development since a break above the 1450s and has been moving higher for the best part of August. The 1500 level was penetrated to 1480 in recent sessions but the bulls committed for a continuation, to the upside. From here, the 1528/30s come as a prior support area where the price was to be expected to hold initial tests. However, on a full-on break higher, bulls will look to the 127.2% Fibo target which is located around 1,560, guarding the Oct 2012 highs at 1795.
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.