Gold drops from six-year highs on turn-around Tuesday


  • Gold prices dropped heavily on the drop of a trade war headline.
  • Risk is sensitive but gold bulls stop in on the downside at the 1480s.

Gold prices on turn-around Tuesday flipped over from six-year highs following news that the US was delaying tariffs on China with hopes of further talks to take place in September. Spot gold dropped from the highs of $1,535 to a low of $1,480, ending on Wall Street  - 0.60% as market sentiment still remains cautionary on any signs of progress between the US and China - (Hong Kong could well be an underestimated risk to the trade progress between the two nations and global growth). As for futures, Gold for December delivery on Comex dropped  $3.10, or 0.2%, to settle at $1,514.10 an ounce after trading as high as $1,546.10 an ounce. Overall, the price of the safe-haven metal is still up 18% year-to-date rise, most of the rise in august alone.

U.S. will delay imposing 10% tariffs on certain Chinese products until December

The U.S. Trade Representative’s office said the U.S. would delay imposing 10% tariffs on certain Chinese products until December 15th. this follows the apparent discussion between Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He. Officials are said to engage in talks again within two weeks. However, the goods news was dimmed down within the same hours as to when there were reports that the Chinese military was headed to the Hong Kong border as protestors continue to demonstrate and keep the Hong Kong airport locked down. 

US CPI meets market expectations

US CPI printed in line with market expectations in July at 0.3% m/m, pushing annual inflation up 0.2%pts from June to 1.8%:

"Core inflation (ex food and energy) was a touch stronger than expected, also at 0.3% m/m, which saw the annual measure lift to 2.2% from 2.1% in June. While there appears to be some temporary strength in the details (airline fares, tobacco), two consecutive 0.3% m/m rises for core inflation may give some policy makers cause to believe inflation pressures are a touch stronger than previously assumed," analysts at ANZ Bank explained. 

Gold levels

Gold is holding territories above the psychologically important 1500 level, although 1480 has shown its resilience on Tuesday. A break there pens risk to 1450s and 1402. On a continuation, to the upside, the 1528/30s comes as a prior support area where the price would be expected to hold initial tests. However, on a full-on break higher, bulls will look to the 127.2% Fibo target which is located around 1,560, guarding the Oct 2012 highs at 1795.

XAU/USD

Overview
Today last price 1502.38
Today Daily Change -8.72
Today Daily Change % -0.58
Today daily open 1511.1
 
Trends
Daily SMA20 1445.54
Daily SMA50 1406.1
Daily SMA100 1346.94
Daily SMA200 1311.18
Levels
Previous Daily High 1518.48
Previous Daily Low 1488.19
Previous Weekly High 1510.16
Previous Weekly Low 1436.96
Previous Monthly High 1452.72
Previous Monthly Low 1382.02
Daily Fibonacci 38.2% 1506.91
Daily Fibonacci 61.8% 1499.76
Daily Pivot Point S1 1493.36
Daily Pivot Point S2 1475.63
Daily Pivot Point S3 1463.07
Daily Pivot Point R1 1523.66
Daily Pivot Point R2 1536.22
Daily Pivot Point R3 1553.95

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

AUD/USD stays under pressure around 0.6830 while beginning the NFP day

AUD/USD declines to 0.6830 during the initial Friday morning in Asia. The quote stretches losses made on Thursday as the second-tier Aussie data becomes the latest disappointment.

AUD/USD News

USD/JPY resumes decline after faltering around 109.00

The USD/JPY is ending the day with modest losses, as despite encouraging words from US trade representatives, there’s nothing new on a trade deal with China.

USD/JPY News

US Non-Farm Payrolls November Preview: Labor market continues to defy concerns

Non-farm payrolls are predicted to rise 180,000 in Nov following Oct’s 128,000 increase. The unemployment rate is expected to be unchanged at 3.6%. Hourly earnings will gain 0.3% in Nov after October’s 0.2% increase and annual earnings will be stable at 3.0%.

Read more

XAU/USD hesitates near $1480/oz resistance

Gold kicked off December with a bullish reversal to the 1480 resistance. Just above the level the 50 and 100-day simple moving averages (SMAs) are also acting as dynamic resistances.

Gold News

USD/JPY resumes decline after faltering around 109.00

The USD/JPY is ending the day with modest losses, as despite encouraging words from US trade representatives, there’s nothing new on a trade deal with China.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures