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. 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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD hovers around the 34-months lows amid growth concerns

EUR/USD is trading below 1.0850, just above the lowest since April 2017. Concerns about eurozone growth are weighing on the common currency. Markets are watching coronavirus developments. 


GBP/USD shrugs off Brexit concerns and holds its ground

GBP/USD is trading around 1.3050, little-changed. The French foreign minister warned of acrimonious Brexit talks as the UK's chief negotiator is laying down a tough stance. 


Forex Today: Coronavirus fears persist, Japanese economy squeezes, cryptos climb down

China has announced it will stimulate the economy in the face of the coronavirus outbreak, including lower corporate taxes and increased spending. While most factories have returned to work, Beijing has tightened restrictions on movements in the Hubei province.

Read more

Gold slips below $1580 level amid improving risk sentiment

Gold retreats from two-week tops amid receding demand for traditional safe-haven assets. The precious metal failed to capitalize on its recent positive move to near two-week tops and edged lower during the early European session on Monday amid fading safe-haven demand.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info