- Positive trade headlines continue to weigh on the commodity’s safe-haven status.
- A subdued USD price action seemed to be the only factor lending some support.
- Thursday’s release of US CPI figures and US-China trade eyed for a fresh impetus.
Gold failed to capitalize on its early uptick to weekly tops and is currently placed at the lower end of its daily trading range, still holding comfortably above the key $1500 psychological mark.
Following the previous session's directionless trading action, the precious metal managed to regain some positive traction during the Asian session on Thursday in the wake of reviving safe-haven demand amid nervousness ahead of the resumption of the crucial high-level US-China trade talks.
Renewed trade optimism capping gains
The uptick, however, lacked any strong follow-through and remained capped below last week's swing highs on the back of incoming positive trade-related headlines, which remained supportive of the risk-on flows and dented demand for traditional safe-haven assets – including Gold.
The global risk sentiment got a strong boost on Wednesday after Bloomberg reported that China was still open to a partial trade deal with the US. This was followed by reports on Thursday that the US is considering entering into a currency agreement with China as a part of a partial trade deal.
Meanwhile, a mildly weaker tone surrounding the US Dollar helped limit the downside. Despite Wednesday's not so dovish FOMC minutes and a goodish pickup in the US Treasury bond yields, the Greenback remained on the defensive and underpinned demand for the dollar-denominated commodity - Gold.
It will now be interesting to see if the commodity is able to find any meaningful traction as market participants now look forward to Thursday's important release of the latest US consumer inflation figures. This along with trade-related developments might play a key role in determining the next leg of a directional move.
Technical levels to watch
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 alternates gains with losses near 1.0720 post-US PCE
The bullish tone in the Greenback motivates EUR/USD to maintain its daily range in the low 1.070s in the wake of firmer-than-estimated US inflation data measured by the PCE.
GBP/USD clings to gains just above 1.2500 on US PCE
GBP/USD keeps its uptrend unchanged and navigates the area beyond 1.2500 the figure amidst slight gains in the US Dollar following the release of US inflation tracked by the PCE.
Gold keeps its daily gains near $2,350 following US inflation
Gold prices maintain their constructive bias around $2,350 after US inflation data gauged by the PCE surpassed consensus in March and US yields trade with slight losses following recent peaks.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.