- The precious metal recovers ground lost in earlier sessions.
- The weaker greenback collaborates with the upside.
- Uncertainty on the US-China trade front bolsters the demand for gold.
The ounce troy of the precious metal is regaining the smile on Wednesday and is now advancing beyond the $1,550 level, or 2-day highs.
Gold focused on trade, risk
After two consecutive daily pullbacks, the yellow metal is showing signs of recovery amidst the renewed offered bias surrounding the buck and increasing inflows into the safe haven assets. In this regard, yields of the US 10-year note are navigating weekly lows in the sub-1.80% area after climbing as high as the 1.86% zone earlier this week.
The demand for the metal is on the rise on Wednesday as market participants continue to anticipate further effervescence in the Middle East, with the US, Iran and Russia taking centre stage, as well as upcoming tough negotiations in light of the US-China ‘Phase 2’ deal.
On the latter, it is worth mentioning that US Treasury Secretary S.Mnuchin said on Tuesday that tariffs will not be removed until a ‘Phase 2’ deal is in place, most likely after the US elections in November.
Gold key levels
As of writing Gold is gaining 0.39% at $1,552.43 and a breakout of $1,574.21 (38.2% Fibo of the December-January rally) would expose $1,587.93 (high Jan.6) and then $1,611.34 (2020 high Jan.8). On the downside, the next support emerges at $1,536.11 (low Jan.14) seconded by $1,514.10 (61.8% Fibo of the December-January rally) and finally $1,497.02 (100-day SMA).
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.