- The latest trade positive headlines keep a check on Gold’s recovery.
- US-China trade discord, Hong Kong unrest and the USD weakness helped the bullion the previous day.
- Trade/political news will keep the driver’s seat amid a light economic calendar.
With the fresh optimism surrounding the US-China trade accord, Gold prices struggle to extend the previous recovery while taking rounds to $1,471 amid Friday’s initial Asian trading session.
In addition to the Politico and South China Morning Post’s (SCMP) updates on a likely extension to the Huawei sanction waiver, comments from the US Department of Agriculture’s (USDA) McKenny, signaling further talks on Friday and a 50% chance to the deal, brightened the risk sentiment off-late.
The yellow metal rose to one week high on Thursday as trade/political catalysts keep risk tone heavier while the broad weakness of the US dollar (USD) added strength to the momentum. Trade negotiators between the United States and China keep juggling after China denied mentioning the number for the US farm imports. Also weighing the talks were political tensions surrounding Hong Kong protests and China’s objection to the US transit in Taiwan waters. Additionally, disappointing data from Australia and China further pleased the bullion buyers on Thursday.
The USD weakness could be attributed to the Federal Reserve officials’ inability to provide any clear direction to the future monetary policy while the US Jobless Claims’ surge to the highest since June strengthened the greenback bears.
Moving on, a light economic calendar until the US will keep the market’s focus on trade/political headlines for fresh impulse whereas the United States (US) Retail Sales and Industrial Production could entertain traders afterward.
Technical Analysis
100-day Simple Moving Average (SMA) around $1,479/80 acts as an immediate upside barrier ahead of $1,500 round-figure while the recent low around $1,445 and an early-July high around $1,436/35 could please sellers during the pullback.
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
EUR/USD advances toward 1.1200 on renewed US Dollar weakness
EUR/USD is extending gains toward 1.1200 on Friday, finding fresh demand near 1.1150. Risk sentiment improves and weighs on the US Dollar, allowing the pair to regain traction. The Greenback also reels from the pain of the dovish Fed outlook, with Fedspeak back on tap.
Gold price advances further beyond $2,600 mark, fresh record high
Gold price (XAU/USD) gains positive traction for the second successive day on Friday and advances to a fresh record high, beyond the $2,600 mark during the early European session.
USD/JPY recovers to 143.00 area during BoJ Governor Ueda's presser
USD/JPY stages a recovery toward 143.00 in the European morning following the initial pullback seen after the BoJ's decision to maintain status quo. In the post-meeting press conference, Governor Ueda reiterated that they will adjust the degree of easing if needed.
Shiba Inu is poised for a rally as price action and on-chain metrics signal bullish momentum
Shiba Inu remains strong on Friday after breaking above a symmetrical triangle pattern on Thursday. This breakout signals bullish momentum, further bolstered by a rise in daily new transactions that suggests a potential rally in the coming days.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.