Gold plummets below $1,500 on renewed trade optimism

  • USTR in a statement announced a delay to additional tariffs on some Chinese imports.
  • Wall Street posts strong gains on improved risk sentiment.
  • 10-year US Treasury bond yield reverses early losses, up more than 2.5%.

The XAU/USD pair, which capitalized on the risk-off flows and rose to its highest level in more than six years at $1,535, earlier today, came under strong bearish pressure in the last hour and slumped below the critical $1,500 handle as the latest headlines surrounding the US-China trade dispute revived hopes of sides making progress toward an agreement. As of writing, the pair was down around 1% on the day at $1,496.

US delays tariffs on some Chinese products

The United States Trade Representative's office published a statement on Tuesday announcing the Trump administration's decision to delay additional tariffs on some Chinese imports until December 15. Wall Street's main indexes rose sharply on these remarks and the 10-year US Treasury Bond yield erased early gains and was last adding more than 2.5% on the day to reflect the shift in the market sentiment.

According to the USTR's statement, some of the products whose tariffs will be delayed include "computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing," 

The Greenback also capitalized on rising Treasury bond yields, lifting the US Dollar Index to its highest level in a week near 97.80 and putting additional weight on the pair's shoulders.

During the Asian session on Wednesday, Retail Sales and Industrial Production data from China will be looked upon for fresh impetus.

Technical levels to watch for


Today last price 1496.46
Today Daily Change -14.64
Today Daily Change % -0.97
Today daily open 1511.1
Daily SMA20 1445.54
Daily SMA50 1406.1
Daily SMA100 1346.94
Daily SMA200 1311.18
Previous Daily High 1518.48
Previous Daily Low 1488.19
Previous Weekly High 1510.16
Previous Weekly Low 1436.96
Previous Monthly High 1452.72
Previous Monthly Low 1382.02
Daily Fibonacci 38.2% 1506.91
Daily Fibonacci 61.8% 1499.76
Daily Pivot Point S1 1493.36
Daily Pivot Point S2 1475.63
Daily Pivot Point S3 1463.07
Daily Pivot Point R1 1523.66
Daily Pivot Point R2 1536.22
Daily Pivot Point R3 1553.95



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