Gold bleeds on trade optimism, drops 2.5% in GBP terms

  • Investors are selling safe havens on the news of a tentative US-China trade deal. 
  • Gold is flashing red, having hit five-week highs in the overnight trade. 
  • The yellow metal is posting a bigger loss in GBP terms.
  • Sterling is flying high on exit polls predicting Conservative victory.

Gold is losing altitude in Asia as investors are buying risk and selling safe havens on trade optimism. 

The yellow metal, a classic safe-haven asset, is currently trading at $1,464 per Oz, having hit a five-week high of $1,487 in the overnight trade. 

The pullback could be associated with the tweet by President Donald Trump that Washington was “very close” to a trade deal with Beijing. A report that US trade negotiators offered to cancel a new round of tariffs on Chinese goods further boosted the risk appetite. 

Further, as per the latest reports, China has agreed to purchase $50 billion worth of US agricultural goods. 

Gold takes a hit in GBP terms

Gold in GBP terms or XAU/GBP is currently trading at £1,087 per Oz, representing a 2.52 percent drop on the day. Also, the current price was last seen on June 20. 

The Pound has surged on exit polls predicting a bigger than expected majority for Prime Minister Boris Johnson's Conservative party. A Conservative victory is seen paving the way for Brexit and is weighing over the safe-haven gold. 

At press time, the GBP/USD pair is trading 1.3463, having hit a high of 1.3515 a few minutes ago. That was the highest level since May 2018. 

The focus now shifts to the real results. According to Bloomberg, Labour has lost its stronghold Blyth Valley.

Technical levels


Today last price 1464.49
Today Daily Change -10.65
Today Daily Change % -0.72
Today daily open 1475.14
Daily SMA20 1466.35
Daily SMA50 1480.72
Daily SMA100 1488.62
Daily SMA200 1407.7
Previous Daily High 1478.6
Previous Daily Low 1462.8
Previous Weekly High 1484.06
Previous Weekly Low 1454.05
Previous Monthly High 1515.38
Previous Monthly Low 1445.8
Daily Fibonacci 38.2% 1472.56
Daily Fibonacci 61.8% 1468.84
Daily Pivot Point S1 1465.76
Daily Pivot Point S2 1456.38
Daily Pivot Point S3 1449.96
Daily Pivot Point R1 1481.56
Daily Pivot Point R2 1487.98
Daily Pivot Point R3 1497.36



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.

Feed news

Latest Forex News

Editors’ Picks

AUD/USD rises above 50-HMA, bull reversal in the making?

The sell-off in AUD/USD seems to have run out of steam, courtesy easing RBA rate cut expectations after upbeat Australian CPI data. The pair trades above the 50-hour average. A close above 0.6765 would confirm a bullish reversal candlestick pattern on the daily chart. 


USD/JPY fills Monday's bearish gap ahead of Fed interest rate

USD/JPY has filled the gap created by Monday's negative open. Coronavirus fears have subsided in the last 24 hours, allowing recovery in USD/JPY. The respite could be short-lived if the Fed sounds dovish, sending the US dollar lower. 


Federal interest rate preview: Stable policy and an uncertain future

The course of the American economy has not altered since the previous FOMC meeting on Dec last year. 4Q growth is expected to be 2.1% when the preliminary figures are released by the Bureau of Economic Analysis on Thursday.

Read more

Gold: Bulls looking for a discount in $1560s

Gold top in the making with a weekly shooting star and weekly divergence. The price of gold has been found floundering between 1580 and the 1560s following a surge at the start of the year to the highest levels since March 2013 at $1,611.

Gold News

GBP/USD: 1.3080 questions break of short-term falling trendline

GBP/USD trades near 1.3025 during the early Wednesday’s trading session. The pair recently broke a three-day-old falling trend line but is still to cross the near-term key resistance confluence.