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.

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