Gold: Markets flip bullish for the safe haven metal, rallying $10.00 on souring trade-deal headlines


  • Bulls slicing through moving averages and extend to a key resistance level.
  • Trade war headlines spark a flight to safety and Gold picks up the safe-haven bid.

At the time of writing, spot gold is trading bid, breaking through the cluster of the 21/50 and 200-hour moving averages, (bullish), at $1475 and retaining a flat position on the day so far.

Gold has travelled from a low of $1466.02 to a high of $1478.88 and is back en route to that high following the latest trade deal headlines which have sent risk-sentiment lower ahead of the Federal Open Market Committee meetings that are due at the turn of the hour. 

The mood in the equity space has been soured again by news that a Phase One US-china trade deal may not be completed this year, a headline courtesy of Reuters. The S&P 500 is printing -0.83% at the time of writing and off by 25 points on the report. Gold has subsequently rallied off its lowest levels for the day by 0.62%, or $10.00.

Bullish markets for gold

Markets are on red alert and sensitive to trade headlines. Coupled with what appears to be a less dovish backdrop from central banks as well as the extra geopolitical theme associated with the bill on Hong Kong human rights whereby the US Senate on Tuesday unanimously passed the "Hong Kong Human Rights and Democracy Act", overtly taken sides with HK rioters, risk sentiment is on thin ice – that's bullish for gold

Looking ahead, the Federal Open Market Committee minutes are due at the top of the hour, expected to confirm that the Federal Reserve is on hold – See FOMC Minutes PreviewReinforcing the rate pause

The mood in US-Sino trade negotiations are helping gold prices firm yet gain, although the unscheduled meeting between the US President and the Fed Chair is likely providing additional importance to this piece of information in the mosaic that forms the market's investment thesis,"

Analysts at TD Securities argued. 

Gold levels

Bulls have breached the 61.8% Fibonacci retracement of today's range which opens scope for a 100% recovery should the price break the confluence of the resistance line marked by the 14th and 18th Nov highs. A 161% extension meets the 200 4-hour moving average located at $1487.

XAU/USD

Overview
Today last price 1474.2
Today Daily Change 1.71
Today Daily Change % 0.12
Today daily open 1472.49
 
Trends
Daily SMA20 1483.7
Daily SMA50 1491.93
Daily SMA100 1480.71
Daily SMA200 1395.85
 
Levels
Previous Daily High 1475.43
Previous Daily Low 1465.08
Previous Weekly High 1474.6
Previous Weekly Low 1445.8
Previous Monthly High 1519.04
Previous Monthly Low 1455.5
Daily Fibonacci 38.2% 1471.47
Daily Fibonacci 61.8% 1469.03
Daily Pivot Point S1 1466.57
Daily Pivot Point S2 1460.64
Daily Pivot Point S3 1456.21
Daily Pivot Point R1 1476.92
Daily Pivot Point R2 1481.35
Daily Pivot Point R3 1487.28

 

 

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