Gold remains on a back foot around $1425 amid mixed market sentiment


  • Likely reductions in the Middle East tensions join strong US Dollar (USD) and mixed expectations from the US-China trade talks to limit Gold moves.
  • Second-tier data from the US could also entertain intra-day traders.

Following mixed trade/political clues, Gold traders remain largely sidelined ahead of the key events as the yellow metal trades near $1425 amid initial Asian session on Tuesday.

The US Senate’s failure to override the President Donald Trump’s veto denying the bill to block arms sales to Saudi Arabia and Iran’s open letter expecting help from the UK’s new Prime Minister Boris Johnson seem receding political fears off-late. However, uncertainty surrounding the US-China trade ties ahead of the two-day negotiations in Beijing, coupled with pessimism concerning the US Federal Reserve’s future monetary policy actions and the President Trump’s repeat attack on the Fed keep the safe-havens in demand.

Recent headlines from South China Morning Post (SCMP) emphasize China’s increased imports of the US agricultural products as a goodwill gesture. Contradicting the same is a survey conducted by the Financial Times (FT) that indicates nearly 40% Chinese exporters out of 200 expect a continuation of the trade tension between the world’s two largest economies.

The US Dollar (USD) maintains its recovery on the back of expectations that the Federal Reserve will refrain from a 50 basis point rate cut during this week’s monetary policy meeting.

In addition to the trade headline/political headlines, the US housing, consumer confidence and personal income-spending data could also offer intermediate trading opportunities.

Technical Analysis

While $1438.50/39 area, comprising June 25 high and late-July 18 low, seems an immediate tough upside resistance to watch, a three-week-old ascending trend-line near $1417 can limit the bullion’s near-term declines.

    1. R3 1435.23 
    2. R2 1430.05 
    3. R1 1424.25 
  1. PP 1419.07 
    1. S1 1413.28 
    2. S2 1408.1 
    3. S3 1402.3

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD drops towards 1.1300 on dovish ECB headlines

EUR/USD is extending the drop towards 1.1300 after the ECB is debating over a potential increase in the APP at its meeting next week. The US dollar rebounds amid a cautious mood. Omicron, US-China woes keep investors on the edge.

EUR/USD News

GBP/USD battles 1.3200 amid Omicron jitters, USD rebound

GBP/USD is trading flat around 1.3200, struggling to capitalize on the overnight goodish rebound from a one-year low. Fresh COVID-19 jitters pushed back BoE rate hike expectations and undermined the pound. Resurgent USD demand further stalled aggressive bullish bets.

GBP/USD News

Gold eases towards $1,780 on resurgent USD demand

Gold remains on the back foot below $1,790 amid broad US dollar reboud. Market sentiment dwindles as virus-linked news battles geopolitical fears, Fed rate hike concerns. Friday’s US CPI becomes crucial as inflation expectations improve.

Gold News

Analysts believe Ripple could beat SEC lawsuit on one condition

Experts are weighing in on the possible closure of the payments giant's lawsuit with the SEC. Analysts predict that the payment giant's win in the SEC vs. Ripple case could push XRP to a new high.

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures