Gold seesaws as risk sentiment switches on and off

  • Reports from Brexit, US-China trade deal and North Korea have been the forces behind a shift in market mood.
  • While the UK lawmakers may try to soothe Brexit pessimism, souring politics at the US, North Korea and China can keep risk aversion active.

Gold changes the hands around $1298 on early Friday. The yellow metal lost near 1.0% on Thursday due to risk-off sentiment but challenges to the UK, doubts over the US-China trade deal and statements from North Korea pleased buyers during initial Friday.

Bullion traders trimmed early-week gains on yesterday after news that the British parliament favored no-deal Brexit improved macro risk sentiment. The US Dollar (USD) and equity markets took advantage of the same.

However, the optimists were challenged during early Asian sessions today following the report that the UK Prime Minister Theresa May said to request the EU for three additional months for Brexit after the initial March 29 deadline was rejected by the UK members of parliament (MPs).

Additionally, doubts grew over the US-China trade deal after the US President Donald Trump’s meeting with his Chinese counterpart Xi Jinping was postponed till April than initially anticipated in March. Furthermore, risk aversion was also supported as the US lawmakers were cited criticizing China on human rights violations and North Korea was reported considering to suspend nuclear talks with the US.

Looking forward, Brexit developments and the US lawmaker’ comments on probable chances of the US-China trade deal could direct near-term risk sentiment and gold prices.

Gold Technical Analysis

Unless clearing $1292 to $1311 range, Gold prices are less likely to register further momentum either towards $1321 resistance or in a direction to $1288 and $1281 support levels.

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 trims Pound-related gains, back to 1.1150/60 price zone

The EUR/USD pair got a nice short-lived boost from Brexit optimism, although it quickly trimmed gains, as PM May failed to convince the markets. Failure near 1.1200 left doors opened for a retest of the yearly low at 1.1110.


GBP/USD nears 1.2700 as Brexit optimism fades

The GBP/USD pair keeps easing from daily highs and approaches the 1.2700 figure, down from 1.2814 as UK opposition wasn't convinced by PM May 'new' Brexit deal proposal.


USD/JPY extends gains above 110.50, to highest in two weeks despite US Dollar weakness

The USD/JPY broke above 110.25 earlier today and accelerated to the upside. During the American session printed a fresh daily high at 110.63, the strongest in two weeks. 


Gold struggles pull away from May lows, continues to trade near $1270

The XAU/USD pair closed the first day of the week virtually flat below the $1280 mark and came under a renewed pressure on Tuesday as the upbeat market sentiment didn't allow the precious metal to find demand as a safe-haven

Gold News

Anti-EU populism rise not priced in the EUR, European election could hit Euro

The European Union is holding its Parliamentary election next Sunday, May 26th and the impact of this political event seems to be underpriced by currency markets. 

Read more