Gold stages solid comeback ahead of Trump-Xi meeting

The US-led trade protectionism grabs the spotlight as the main culprit to cause downside economic risk at the G20.
The US President Donald Trump might not entertain the indirect blame, risking outcomes of the key trade talks to be held tomorrow.

Anil Panchal FXStreet

Not only Japanese Prime Minister (PM) but leaders from India and China were also loud enough to criticize the downside impact of trade protectionism on the global economy during their appearances at the G20.

With this, the Gold prices stretched their latest recovery back to $1419.50 ahead of the European markets open on Friday.

Speculations that the US President Donald Trump might not like global criticism while he is working towards Making America Great Again (MAGA) offered initial support to the safe-havens. The moves were also carried forward when it was reported by the Wall Street Journal that China is likely to ask the US favors for Huawei during their much-awaited trade talks.

Risk tone was also heavy as investors await the US-China announcement over trade, scheduled for Saturday, amid fewer chances of a breakthrough as conveyed by major media.

Technical Analysis

FXStreet Analysis, Ross J. Burland, spots stochastics on 4-hour chart as a positive indicator to the price momentum as he says:

4-HR stochastics are turning positive although there remains a mixed outlook on the charts with daily readings in oversold territory still. The price remains on the verge of a 50% retracement of the 20th June spike and a break there, below 1398, opens inroads to 1357.

1. R3 1427.23
2. R2 1419.51
3. R1 1414.76
PP 1407.04
1. S1 1402.29
2. S2 1394.57
3. S3 1389.82

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

AUD/USD flirts with 0.7000, lowest since early August amid bullish USD

AUD/USD hits a fresh low since early August during the Asian session on Friday and looks vulnerable near 0.7000 after breaking below the 200-day SMA overnight. Against the backdrop of the hawkish Fed, a two-day rally in oil prices revives inflation fears and continues to push US bond yields to multi-year highs. Adding to this, geopolitical risks lift the US Dollar to a two-month high, overshadowing RBA rate hike bets and weighing on the pair.

USD/JPY pulls back from three-week high after failing near 159.00

USD/JPY edges lower during the Asian session on Friday, stalling its recent strong move to a three-week high of 159.00 as Japanese Yen bears turn cautious amid intervention fears. Meanwhile, the US Dollar retains a strong bullish undertone as the Fed's hawkish outlook and oil-driven inflation fears continue to push US bond yields to multi-year peaks. Furthermore, the BoJ's dovish rate hike last week might cap JPY and support spot prices.

Gold treads water below $4,300

Gold grabs some buying attention and advances marginally at the end of the week, partially retracing the weekly decline, although it is still navigating below the key $4,300 mark per troy ounce. The fresh selling bias on the Greenback and the modest decline in US Treasury yields appear to support the humble advance in the precious metal.

Crypto Today: Bitcoin and Ethereum edge lower, XRP extends recovery as macro headwinds weigh

The broader cryptocurrency market is consolidating on Friday, with Bitcoin paring losses slightly above $84,000. Ethereum declines in tandem with BTC. Ripple (XRP), meanwhile, paints a different picture.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Federal Reserve (Fed) and the Bank of Japan (BoJ) have just done something remarkably similar. Both central banks raised interest rates by 25 basis points (bps) last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.