Gold Spot ($) Intraday: under pressure
Pivot (invalidation): 1465.50
Our preference
Short positions below 1465.50 with targets at 1458.50 & 1454.00 in extension.
Alternative scenario
Above 1465.50 look for further upside with 1468.00 & 1471.00 as targets.
Comment
The RSI is mixed with a bearish bias.
The changing investment case for gold in 2020
We head into one of the biggest weeks for event risk in some time and arguably the overriding risk plays out this weekend, where we find out if the scheduled 15% tariffs on $160b of Chinese exports (to the US) kick in. The consensus is we see a loose agreement to suspect the implementation of tariffs and to revisit talks and tariffs in late January/early February 2020. Of course, we could feasibly see tariff rollbacks, but that seems even more unlikely, and that would cause a strong positive reaction.
There has been some modest buying of USDCNH (offshore yuan) 1-week implied volatility, which tells me there are rising expectations of a move in spot USDCNH, but at 6.0425% it’s still very calm. We’ve seen some genuine interest in gold as a hedge against a negative reaction in risk from a tariff increase and certainly well above average volumes. I guess this is an out-of-consensus view, certainly when we contrast to the price action on the daily or weekly chart. as gold is finding sellers easy to come by and not a universally welcomed hedge. Read more...
Gold adds to overnight modest gains, up little around $1465 region
Gold edged higher for the second consecutive session on Tuesday and built the overnight modest gains, albeit lacked any strong follow-through.
Persistent uncertainty over a potential phase one trade deal between the world's two largest economies continued weighing on the global risk sentiment. The same was evident from a weaker tone around equity markets and underpinned demand for traditional safe-haven assets, including gold.
Bulls take cues from trade uncertainty
It is worth recalling that the deadline for the next round of US tariffs on around $156 billion worth Chinese products is December 15. However, the Agriculture Secretary Sonny Perdue fueled some optimism on Monday and said that the US is unlikely to impose more tariffs. Read more...
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?