Gold traders concentrate more on geopolitical risks than trade headlines
|- Gold prices stay firm amid mixed political plays surrounding the US, China, North Korea and the Middle East.
- Trade positive comments from US President Donald Trump fail to drag the yellow metal south.
- The holiday season will restrict market moves, trade/Brexit headlines will be the key to follow.
Gold prices begin the week on a positive side while taking the bids to $1,478.60 amid the initial Asian session on Monday. In doing so, traders seem to pay a little heed to US President Donald Trump’s trade positive comments while paying more attention to geopolitical concerns surrounding the US, China, North Korea and the Middle East.
The US President Donald Trump’s optimism surrounding the US-China phase-one failed to please traders as China’s President Xi Jinping responded with a cold heart while disliking the US interference in the internal matters. The same could also be attributed to the US President’s signing of a new defense authorization bill that includes, as per China’s SCMP, measures to strengthen Washington’s ties with Taiwan and slow the lifting of sanctions on Huawei to be lifted.
Further, the Chinese President also spoke to his US counterpart about North Korea, as per Reuters, while suggesting that all parties should come to a settlement.
Read: Xi has accused the United States of interfering in its internal affairs
Earlier, the New York Times came out with the news that the US military & intelligence officials are tracking North Korea's actions by the hour & bracing themselves for a major imminent missile test. In this regard, the US military chief said that they’re prepared for whatever from North Korea.
Elsewhere, a wee journalist from Iran tweeted comments from the ex-Chief of Iranian Army Ground Force while saying that Israel had plans to bomb Iranian nuclear sites last month in the course of Iran protests.
Global traders cheered upbeat US data on Friday, which in turn helped the US 10-year treasury yields to stay positive to 1.92% by the week’s closing.
Markets are likely to stay sluggish during the holiday-shortened week. However, Monday’s US data might offer an active start to the week. Overall, investors will be on the lookout for trade/political headlines for fresh impulse.
Technical Analysis
Unless providing a daily closing below the 50-day Simple Moving Average (SMA) level of $1,477, prices can keep rising towards the monthly top near $1,487.
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.