Gold: bulls are ready to talk hold once more [Video]

Richard Perry Independent Analyst

Gold

Gold is a market seen as a key gauge of risk appetite and the outlook for the dollar. So given the importance of the latest round of US/China trade talks, a $12 (ie. small) daily range (the Average True Range has been above $20 for the past three months) with a doji candle around the mid-point, should not be unexpected. This is a market waiting for a catalyst. Yesterday was another session where the $1500 level has been traded, but there has been a slight pick up today in the lead up to the trade talks. Momentum is a shade above neutral across our signals, but the resistance of the one month downtrend falls at $1520 today and $1518.50 also remains as a barrier. There is a sense that the bulls are ready to talk hold once more, but this has to be a wait and see moment for now.

Author

Richard Perry

Independent Analyst

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD falls toward 1.1700 on broad USD recovery

EUR/USD turns south and declines toward 1.1700 on Wednesday. The US Dollar gathers recovery momentum and forces the pair to stay on the back foor, as traders look to USD short-covering ahead of US inflation report on Thursday. However, the downside could be capped by hawkish ECB expectations.

GBP/USD trades deep in red below 1.3350 after soft UK inflation data

GBP/USD stays under strong selling pressure midweek and trades below 1.3350. The UK annual headline and core CPI rose by 3.2% each, missing estimates of 3.5% and 3.4%, respectively, reaffirming dovish BoE expectations and smashing the Pound Sterling across the board ahead of Thurday's BoE policy announcements.

Gold clings to moderate daily gains above $4,300

Following Tuesday's volatile action, Gold regains its traction on Wednesday and trades in positive territory above $4,300. While the buildup in the USD recovery momentum caps XAU/USD's upside, the cautious market stance helps the pair hold its ground.