Gold holds on to recovery gains amid trade/political pessimism


  • Gold respects recent challenges to market sentiment.
  • Trade optimism fades, Middle East tension increases.
  • Equities, bonds also register modest changes.

In addition to bouncing off multi-month-old rising trend-line, Gold gains support form recently downbeat trade/political headlines while taking the bids to $1,500 during Friday’s Asian session.

The news/reports concerning Saudi-led alliance’s military strikes in Yemen and challenges to the US-China trade optimism, as ascertained from the US diplomats’ comments, seem to attract the yellow metal buyers.

Though, bulls are still catching a breath after a slew of busy sessions in a few days as no major data/even is up for publishing during early Friday. It should also be noted that S&P 500 Futures and MSCI’s Asia Pacific Index (ex-Japan) join the US 10-year Treasury yields while portraying the lack of sentiment.

It’s worth mentioning that the pessimism spread through Germany’s monthly report, the White House Adviser Peter Navarro and the ex-IMF (International Monetary Fund) Chief Christine Lagarde have also been considered by safe-haven. Furthermore, China again stopped the US intervention in the Hong Kong issue and reignited fears of another trade war ahead of the key October meeting.

Given the lack of major data/events, investors will keep an eye over the trade/political headlines for fresh direction.

Technical Analysis

FXStreet Analyst Ross J Burland spots the bulls’ struggle while saying:

"The bearish pin bar and the 4-HR 200 moving average is keeping the bulls in check with a series of failing bullish attempts higher in the 1,500s.  A 50% mean reversion of the late June swing lows to recent highs around 1470 guards the 19 July swing highs at 1,452.93. On the upside, the  4-HR 200 MA is located at 1,510 and is guarding 1,550 level is still the target to breach which then opens prospects for 1,590 as the 127.2% Fibo target area."

Share: Feed news

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


Recommended content

Editors’ Picks

GBP/USD clings to recovery gains above 1.3200, as BoE looms

GBP/USD clings to recovery gains above 1.3200, as BoE looms

GBP/USD sustains the recovery above 1.3200 in early Europe on Thursday, having found buyers near 1.3150. A fresh US Dollar pullback and a rebound in risk sentiment offer support to the pair ahead of the BoE policy announcements. 

GBP/USD News
EUR/USD holds higher ground above 1.1100, focus shifts to ECB-speak

EUR/USD holds higher ground above 1.1100, focus shifts to ECB-speak

EUR/USD is holding higher ground above 1.1100 in the early European session on Thursday. The pair is underpinned by the renewed US Dollar retreat, as traders digest the Fed's dovish outlook, bracing for ECB-speak for fresh trading incentives. US data are also eyed. 

EUR/USD News
Gold price jumps back closer to all-time peak, $2,600 remains in sight amid fresh USD weakness

Gold price jumps back closer to all-time peak, $2,600 remains in sight amid fresh USD weakness

Gold price regains positive traction following the previous day's pullback from the all-time peak and builds on its steady intraday ascent heading into the European session on Thursday. 

Gold News
BoE expected to keep interest rate unchanged at 5% as price pressures persist

BoE expected to keep interest rate unchanged at 5% as price pressures persist

After a close call in August, the Bank of England’s September interest rate decision is keenly awaited for fresh cues on the bank’s future policy action and the pace of its bond sales.

Read more
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures