Gold heavy yet geopolitics dominate
- Gold gives back ground, yet fundamentals are bullish.
- The market remains profoundly biased risk-off.
Gold is a little weighted at this level, having started out 2020 crouching on the Sep. double tops. The yellow metal is trading at $1,518 at the time of writing having consolidated in a $1517/21 price range The trade war will continue to be a mystery and a supportive factor for gold. For that reason, the precious metal has already produced the largest return in nearly a decade.
It would appear that gold is receiving an undercurrent of support while the market remains profoundly biased risk-off and we can likely expect more of the same as markets await a rade deal update noiseMeanwhile, a weaker US dollar narrative is gathering steam which the bulls can probably rely on. Optimism about a partial US/Sino trade pact will also likely wear thin, which favours an upside outlook for the yellow metal.
Trade deal or no deal, still gold positive
In recent news, we had President Trump on Tuesday saying that the first phase of a trade deal will be signed on Jan. 15. We also heard that the Chinese delegation will arrive as soon as this weekend, yat Trump also said he will travel to China “at a later date” to begin the second round of talks.
Gold levels
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.
