Gold consolidates recent gains amid mixed trade/Brexit headlines

Gold prices trade in a choppy range surrounding $1,479 during Friday’s Asian session. That said, the yellow metal posted first daily gains on the previous day mainly due to the weaker USD. It’s worth mentioning that the recently mixed trade/positive headlines seem to have capped the price recovery.

Among the positive headlines, the UK government’s announcement to get the Brexit deal through Commons by January 9 and the US House of Representatives’ passage of the United States Mexico Canada Agreement (USMCA) seem to have exerted downside pressure on the prices. Further, the Wall Street Journal’s (WSJ) report that the European Council may now inch closer to trade with Beijing under the new leadership also contributed to stalling the rush to risk-safety.

On the contrary, news of the German Finance Ministry’s global pessimism and Canada’s push to the US to not sign any deal with China unless Beijing releases two of Canadian citizens are likely forces to keep the risk-off alive.

The bullion prices rose to the weekly high during the previous day mainly as the US dollar (USD) dropped across the board.

After the recent release of better than expected Japan’s National Consumer Price Index (CPI) data, the economic calendar doesn’t have any major data/events during the Asian session. That divers the market attention to the US session that has the final reading of the third quarter (Q3) Gross Domestic Product (GDP) scheduled for publishing. Meanwhile, trade/Brexit headlines could keep offering surprises to the bullion players.

Technical Analysis

While sustained trading beyond 50-day Simple Moving Average (SMA), at $1,477 now, signals the Bullion’s strength, prices need to remain strong above $1,480 to aim for monthly top surrounding $1,486.