Gold: Mildly positive around $1556 despite trade/political optimism


  • Gold prices ignore the US diplomat’s optimism concerning the latest trade deals with China, Canada and Mexico.
  • China’s Vice Premier praises Washington for dumping it off the currency manipulator list.
  • The US dollar weakness could be cited as reasons.

Gold prices extend the recent recovery from $1,555 while taking rounds to $1,556.80 during the Asian session on Thursday. The precious metal seems to concentrate more on the US dollar (USD) weakness than trade/political headlines that have been positive off-late.

Following the successful phase-one deal signing in ceremony, China’s Vice Premier Liu He recently crossed wires while saying that it was the correct choice for the US to remove China from the currency manipulator list.

On the other hand, the US Treasury Secretary Mnuchin also appeared in media, via Fox, as conveying the optimism from the latest US trade relations with China, Canada and Mexico. The Trump administration member said, “The United States–Mexico–Canada Agreement (USMCA) and the US-China trade deal will add 50 to 70 basis points to US GDP.”

Even so, the US 10-year treasury yields and S&P 500 Futures seem to be a little happy with the news, which in turn pushes traders towards gold, the traditional safe-haven. Also contributing to the yellow metal’s mild strength could be the USD weakness. Further, the US House Speaker Nancy Pelosi and certain other politicians presented the papers to push for President Donald Trump’s impeachment to the Senate.

Investors will now take a serious note of the trade/political headlines for the immediate direction ahead of the US session that is likely to offer more clarity to the greenback traders. The reason is the presence of the December month Retail Sales data for publication.

Technical Analysis

While 10-day SMA, near $1,557, acts as an immediate upside barrier holding the key to the metal’s run-up beyond $1,570, September month high near $1,535 and 21-day SMA close to $1,528 restrict short-term downside.

Additional important levels

Overview
Today last price 1556.35
Today Daily Change 0.07
Today Daily Change % 0.00%
Today daily open 1556.28
 
Trends
Daily SMA20 1527.42
Daily SMA50 1491.09
Daily SMA100 1496.52
Daily SMA200 1434.82
 
Levels
Previous Daily High 1558.1
Previous Daily Low 1546.1
Previous Weekly High 1611.3
Previous Weekly Low 1540.3
Previous Monthly High 1525.1
Previous Monthly Low 1454.05
Daily Fibonacci 38.2% 1553.52
Daily Fibonacci 61.8% 1550.69
Daily Pivot Point S1 1548.88
Daily Pivot Point S2 1541.49
Daily Pivot Point S3 1536.88
Daily Pivot Point R1 1560.89
Daily Pivot Point R2 1565.5
Daily Pivot Point R3 1572.89

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD loses 1.1800 amid escalaing US-Sino tensions

EUR/USD dips sub-18 after the US reported an increase of 1.763 million jobs in July, better than estimated but pointing to a deceleration. Escalating Sino-American tensions are boosting the dollar and fiscal talks are eyed. 

EUR/USD News

GBP/USD resumes decline, weighed by UK concerns, US-China conflict

GBP/USD trades at fresh weekly lows below 1.3050 as the dollar got a sudden boost from mounting tensions between the world's two largest economies. UK Chancellor Rishi Sunak said the furlough scheme that is underpinning the economy cannot last forever.

GBP/USD News

XAU/USD drops $50 from record highs to the $2020 area

Gold prices are falling sharply on Friday, trading below $2040/oz at the moment. Earlier on Friday, the yellow metal reached at $2075, a new record high.

Gold News

Bitcoin may extend the recovery once Gold resumes the rally

Gold retreated from the recent highs, but the sentiments are still bullish. Cryptocurrencies resumed the upside, some altcoins are demonstrating strong gains. ETH/BTC stopped the downside correction and settled at $0.03300.

Read more

WTI drops 1% to $41.50 ahead of US NFP, rigs data

WTI (futures on Nymex) is on a steady decline so far this Friday, undermined by reduced demand for higher-yielding assets amid the renewed US-China tensions induced risk-aversion.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures