XAU/USD Set to Break Higher as Investors Remain Unsure Whether Phase1 Deal Can End the 3-Year Trade War


Gold prices steadied this morning after the United States and China signed a preliminary trade deal, and as investors remained concerned despite Trump celebrating the preliminary deal as a massive victory. In reality though, many questions remain open and this could just be the beginning for now. The current agreement basically only says that China will increase its imports from the US by $200 Bio within the next two years and protects intellectual property. The US is leaving most of the tariffs in play which of course will likely lead to further uncertainty as either side has agreed to not increase tariffs any more for now

fxsoiriginal

XAU/USD can be seen as a rebound if the resistance area can be broken. We support a breakout move above the $1557.00 level. The market could retrace higher towards the $1575.00 area should we see negative news from the stock markets today. As the $1545.00 support area has been tested successfully we could be close to a jump higher again. It has also been utterly quiet around Iran in recent days, and if we get any provocation from either party on that front, we could see XAU/USD breaking significantly higher.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.8% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The content of this material and/or any information provided by BDSwiss Holding PLC should not in any way be construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument and it is not intended to provide a sufficient basis on which to make investment decisions, in any manner whatsoever. Any information, views or opinions presented in this material have been obtained or derived from sources believed by BDSwiss Research Department to be reliable, but BDSwiss makes no representation as to their accuracy or completeness. BDSwiss Holding PLC accepts no liability for loss arising from the use of this data and information. The data and information contained therein are for background purposes only and do not purport to be full or complete.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD hits two-month lows amid USD strength

EUR/USD has pared its gains that followed upbeat preliminary PMIs for Germany came out above expectations, pointing to a recovery. The USD is advancing amid fears of the coronavirus.

EUR/USD News

GBP/USD drops below 1.31 amid USD strength, fails to sustain PMI gains

GBP/USD is trading below  1.31 after hitting a fresh high of 1.3172. The UK Manufacturing PMI beat with 49.8 and Services PMI with 52.9. The USD is gaining ground across the board.

GBP/USD News

Cryptos: Bears take over and draw a bloody moon

Despite appearances, Bitcoin is the asset with the best risk/benefit ratio. The current falls are adjusted to the ranges of the previous rise. Downward momentum expires in the first half of February.

Read more

Gold rebounds above $1560

The XAU/USD pair dropped to a daily low of $1556.70 during the European trading hours as the easing worries over coronavirus becoming a global epidemic and a broad-based USD strength put the pair under bearish pressure.

Gold News

USD/JPY stuck in range around 109.50 amid China coronavirus concerns

USD/JPY sticks to its range play around the midpoint of the 109 handle amid rising fears of the Chinese coronavirus outbreak globally, upbeat Japanese CPI data and a minor bounce seen in the US dollar across the board. Focus shifts to US PMIs. 

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures