Gold remains below $1500 as US-China goodwill efforts regain market attention

  • ECB and US CPI offered a volatile day to gold traders.
  • US-China trade optimism regains market attention off-late.
  • US consumer-centric data, trade/political headlines will be in the spotlight.

Following the ECB decision and US CPI-led crazy Thursday, Gold prices stays on the back foot while taking rounds to $1,498 during Friday’s Asian session.

The yellow metal turned wild with the European Central Bank’s (ECB) deposit rate cut and quantitative easing (QE) measures while upbeat prints of the US Core Consumer Price Index (CPI) added fuel to the volatile session the previous day.

However, markets shifted their attention back to the US-China goodwill gestures that have been limiting the safe-haven demand off-late. Among the baby-steps, delayed tariffs from the US, readiness to buy more of the US agricultural products by China, and upbeat statements from the US President Donald Trump and Treasury Secretary Steve Mnuchin gained major attention.

Sellers might also have emphasized the US President Trump’s comments that he is considering North Korea and Iran’s proposal to talk, which in turn could recede the geopolitical tension.

Moving on, August month data of the US Retail Sales and Michigan Consumer Sentiment Index for September will be the key for the bullion traders while also keeping an eye over macro headlines.

Technical Analysis

FXStreet Analyst, Ross J Burland, spots pin bar on the daily chart as a bearish signal while saying:

The 21-day moving average was pierced but only momentarily and there has been a bearish pin bar left on the daily chart, signaling further downside to follow. Indeed, the price remains below the 23.6% Fibonacci (Fibo) retracement of the July lows to recent swing highs as well as trading below the psychological 1500 handle. Below the 1,480 target, 1,478 comes as the 13 August volatility spike low which guards the 19 July swing highs at 1,452.93. Bulls will need to get back above 1,550 which then guards prospects for 1,590 as the 127.2% Fibo target area. 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD retreats on the hawkish Fed cut

EUR/USD is trading closer to 1.10 after the Fed cut rates but signaled no further rate reductions. The bank acknowledged the strong labor market and robust consumption. However, it is worried about investment.


GBP/USD falls further away from 1.25 after the Fed

GBP/USD is trading further below 1.2500 after the Fed cut rates but signaled no fresh moves. The Brexit impasse and weak UK inflation figures weigh. 


USD/JPY pops 20 pips on the as expected Fed

USD/JPY is currently trading at 108.32 following the FOMC, travelling between 108.08 and 108.33 but is virtually flat on the day as the Fed lowered rats as expected by 25 basis points.


Gold drops on strength in the Greenback following a dubious Fed rate cut

Gold prices have dropped on the Federal Reserve decision whereby no real assurance of more cuts down the line were presented. However, the door has been left open which limits the downside potential in this move.

Gold News

New Zealand GDP preview: growth seen slowing but RBNZ acted ahead

New Zealand will release this Thursday it´s Gross Domestic Product for the second quarter of the year, a couple of hours after the Fed’s monetary policy decision.

Read more