Gold extends range trade below $ 1460, eyes worst month since 2016
- Gold bulls are struggling to regain 1460 levels despite softer risk tones.
- Weaker US dollar amid US-China trade/ political woes keeps Gold buoyed.
- Focus on trade developments and China PMI data for the next direction.
Gold is back on the bids in the Asian trades this Black Friday, recovering from a dip to session lows of 1456.50. However, the bears continue to guard the 1460 barrier, keeping the upside attempts in check.
A lack of fresh catalysts surrounding the US-China trade as well as political developments limit the price movement in the yellow metal while Thanksgiving holiday mood also appears to leave investors somewhat inactive.
Despite the dull trading activity, the gold bulls manage to find some support from the recent weakness in the US dollar across the board, as markets unwind their positions heading into the month, in the wake of looming uncertainty over the US-China trade deal, especially after US President Trump’s Hong Kong Democracy Act angered the Chinese authorities.
Also, the precious metal benefits from the tepid risk sentiment, as the focus now remains on the trade-related developments and Chinese manufacturing activity reports for fresh trading impetus on gold.
It's worth noting that gold prices remain on track to book the worst monthly decline since November 2016.
Gold Technical levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
