Gold: $1300 regains the spotlight as US Pres. Trump's jawboning weakens the USD

Gold trades near $1296.50 during the initial Asian sessions on Monday.
US President Donald Trump’s comments favoring weak USD led to the bullion’s pullback.
However, progress at the US-China trade and Brexit continue to challenge the precious metal’s upside.

Anil Panchal FXStreet

Gold is taking bids around $1296.50 during early Asian trading on Monday. The Bullion prices are on recovery mode mainly due to the US President’s comments favoring weaker USD. It should also be noted that soft stats on Friday and early-day were favorable to the recovery.

Comments from the US President Donald Trump weakened the US Dollar and in-turn strengthened Gold prices. Reuters reported that the US President Donald Trump again criticized the Fed’s rate-hikes and the USD strength during the annual Conservative Political Action Conference in Oxon Hill, Maryland.

Having witnessed disappointing purchasing manager index (PMI) data during last-week, global investors remained in a cautious mode during early Monday. The pullback move gained additional strength after Australian building permits and manufacturing PMIs from South Korea and Taiwan registered dismal outcomes.

In spite of the markets’ turn toward Gold, reports from the Wall Street Journal have been positive to the US-China trade deal whereas news report from The Telegraph and The Independent have been favorable to soft/delayed Brexit. As a result, the recent pullback of the yellow metal may soon be challenged on upbeat reports from either the trade or the Brexit front.

Gold Technical Analysis

While $1300-01 area comprising 50-day simple moving average (SMA) is likely limiting the bullion’s immediate upside, $1303, $1308 and $1313 may entertain buyers then after.

On the downside, $1292, $1288 and $1276 could please the bears during further declines.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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