Gold firmer on news that Pres. Trump signed Hong Kong bill

Gold is barely responding to the latest spanner in the works for trade deal progress.
Traders wait to see how China reacts to the signing of the Hong Kong bill.
Bulls need a close beyond the 21st Nov lows that meet a 38.2% Fibonacci key level.

Ross J Burland FXStreet

Gold has popped a few bucks on the news that US President Trump has said signed the Honk Kong bill and subsequently said, "I signed these bills out of respect for President Xi, China, and the people of Hong Kong. " Gold rallied $3.46c/oz on the news to test its 50-hour moving average. Markets have been unusually desensitised to trade headlines in recent sessions, despite conflicting headlines and themes.

This news, in particular, should be igniting a risk-off surge, but so far, the immediate reaction has been relatively subdued. Gold remains in bearish territory, AUD is off just 0.17% at the time of writing, (albeit marking fresh lows, the lowest since mid-October) while the yen is down only 20 pips vs the greenback.

How will China react?

China warned the US that should Trump sign the bill, it would be a gross interference in the nation's affairs and a violation of international law and threatened to retaliate. Subsequently, the implications could be a freeze on trade talks all together - watch this space and for how China reacts. Following the signing of the bill, Trump said 'they are being enacted in the hope that Leaders and Representatives of China and Hong Kong will be able to amicably settle their differences leading to long term peace and prosperity for all".

However, we may need to wait until next week's open for all of this to digest and be fully consumed by the markets considering that North America will be out on holidays. US stocks and the US bond market will be closed on Thursday in observance of Thanksgiving. On Friday, the New York Stock Exchange and the Nasdaq will resume normal trading hours but will close early at 1 p.m. ET.

Gold levels

Testing the 50-hour moving average here, bulls need a close beyond the 21st Nov lows that meet the 38.2% Fibonacci of the 20th Nov swing-high to recent lows at 1463, a level that guards a run to the 21-DMA and the 61.8% Fibonacci of 1469. The 50-DMA is located at 1479 ad recent aforementioned swing highs. The 200-DMA comes in at 1420 below 1445 12th Nov swing lows.

XAU/USD

Overview
Today last price	1456.93
Today Daily Change	-5.67
Today Daily Change %	-0.39
Today daily open	1462.6

Trends
Daily SMA20	1475.59
Daily SMA50	1488.59
Daily SMA100	1483.6
Daily SMA200	1399.5

Levels
Previous Daily High	1462.65
Previous Daily Low	1450.74
Previous Weekly High	1478.86
Previous Weekly Low	1456.54
Previous Monthly High	1519.04
Previous Monthly Low	1455.5
Daily Fibonacci 38.2%	1458.1
Daily Fibonacci 61.8%	1455.29
Daily Pivot Point S1	1454.67
Daily Pivot Point S2	1446.75
Daily Pivot Point S3	1442.76
Daily Pivot Point R1	1466.59
Daily Pivot Point R2	1470.58
Daily Pivot Point R3	1478.5

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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