- Gold clings to $1502 amid sluggish data from Australia/China, Hong Kong protests and US-China trade news.
- Trade/political headlines can offer intermediate trading opportunities while economic calendar has few details to watch.
Having surged to the fresh multi-year top near $1,535, and declining afterward on upbeat trade news, Gold takes the rounds to $1,500 mark ahead of Wednesday’s European open.
The yellow metal previously witnessed downside pressure as the US scaled back some of its September 01 tariffs on Chinese goods to December 15 and said that diplomats from both the economies are talking trade.
Though, the upbeat sentiment couldn’t last long as investors shifted the focus back to Hong Kong protests and the economic calendar during the Asian session. Among them, sluggish activity data from China and wage numbers Australia played their roles to help the bullion regain its strength. However, investors remain cautious of buying at high levels when the US-China recently flashed upbeat trade signals. Adding to the downside pressure could be less problematic news from the Middle East that has off-late favored safe-havens.
Reflecting the mood, the US 10-year treasury yields show less momentum around 1.67% by the press time whereas Asian equities are mostly positive while cheering upbeat remarks from the US.
Investors will now be on the lookout of trade/political headlines for fresh direction as there are fewer economic data left for publishing.
Technical Analysis
FXStreet Analyst, Omkar Godbole, spots lack of momentum around spinning top while indicating bullish exhaustion:
Gold is currently trading largely unchanged on the day at $1,500 and could drop to the 10-day moving average support at $1,484 during the day, as signs of bull market exhaustion have emerged on the daily chart.
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.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.