Gold Price Analysis: XAU/USD stays below $1,750 as S&P 500 Futures print over 1.0% gains
- Gold prices extend pullback from $1,733.50.
- Church reopening in California, US President Trump’s refrain to speak on Hong Kong keep trading sentiment positive.
- The return of full markets, US-China tussle will be in focus for immediate direction.
Gold prices remain mildly positive around $1,728.30 during the early-Asian session on Tuesday. That said, the bullion dropped the previous day amid the UK/US holidays and US President Donald Trump’s refrain from firing shots against China’s march to gain more power in Hong Kong. Also exerting downside pressure on the safe-haven demand could be the hopes of the economic restart after the coronavirus (COVID-19) led halt to the activities.
Recently, the ABC News came out with an update suggesting California issues guidelines for church reopening with congregations limited to 100.
Earlier in Asia, US President Donald Trump crossed wires while indirectly promoting his policies against the Presidential candidate Joe Biden. Though, the Republican leader maintained silence on the Asian major’s legislation to use military power in Hong Kong.
On the other hand, Chinese diplomats keep conveying harsh criticism of the US policies through Global Times.
It should also be noted that the Confederation of Trade Unions in Hong Kong have called for a general strike on Wednesday in retaliation to Chinese National Security Law.
That said, S&P 500 Futures takes the bids near 2,985 while flashing over 1.0% gains whereas Japan’s NIKKEI opens with a 1.0% gain to 20,950.
Looking forward, comments from BOJ Governor Haruhiko Kuroda, at 01:00 GMT, followed by the Aussie PM Scott Morrison’s speech at 02:30 GMT, can offer immediate moves to the markets. However, major attention will be given to how the return of full markets responds to the US-China tussle amid silence from the US President Trump.
On the data front, monthly releases of the US Dallas Fed Manufacturing Index and housing market numbers will decorate the calendar.
Technical analysis
Monthly support line around $1,725 holds the key to the precious metal’s drop towards $1,700 round-figure. Alternatively, $1,748/50 guards the immediate recoveries ahead of pushing the bulls to refresh the monthly top above $1,765.40.
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.
