Gold climbs to near 2-week tops, beyond $1475 supply zone
- US-China trade uncertainty benefitted the commodity’s safe-haven status.
- A sharp fall in the US bond yields remained supportive of the positive move.
- Bulls might wait for a move beyond 100-DMA hurdle, near the $1480 region.
Gold edged higher through the early European session on Wednesday and climbed to near two-week tops, just above the $1475 region in the last hour.
The precious metal added to its recent recovery move from three-month lows and continued benefitting from reviving safe-haven demand, all against the backdrop of the latest developments on the US-China trade front.
Focus remains on trade developments
The US President Donald Trump on Tuesday noted that China was "moving along," but any deal would need to be one he liked and also warned of more tariffs on China if the ongoing trade negotiations failed.
Adding to this, the US Senate unanimously passed a bill aimed at protecting human rights in Hong Kong, which was further seen fueling tension between the negotiating parties and dented investors' appetite for riskier assets.
The global flight to safety was further reinforced by a sharp pullback in the US Treasury bond yields, which fell to a fresh 2-1/2 week lows in the last hour and provided an additional boost to the non-yielding yellow metal.
The uptick, however, is likely to remain limited, rather fizzle out near 100-day SMA resistance – around the $1480-81 region – as the focus now shifts to the release of the latest FOMC monetary policy meeting minutes.
Hence, it will be prudent to wait for some strong follow-through buying before confirming that the commodity might have bottomed out and positioning for any further appreciating move back towards the key $1500 psychological mark.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
