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. 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

When are the RBA minutes and how might they affect AUD/USD?

Despite the Aussie central bank’s measured optimism, coronavirus risk continues to weigh on the AUD/USD and can keep pushing the RBA towards another cautious stunt in its upcoming gathering.

Read more

USD/JPY bulls seeking higher-highs on 110 handle

USD/JPY idles at the top of the day's range in holiday thin markets, oscillating around 109.93 having travelled from a low of 109.71 to a high of 109.96.


Coronavirus peaking? How will it impact the Chinese & wider economies and FX?

Coronavirus third straight day of a drop in new cases; Financial and commodity markets are in recovery. Markets have been encouraged by the Chinese authorities early response to the outbreak. Disruptions outside China are likely to be limited to parts of Asia.

Read more

WTI: Teases bears below 100-bar EMA

WTI declines to $52.20 during the Asian session on Tuesday. The energy benchmark recently dropped below the short-term ascending support line while extending its weakness below 100-bar EMA.

Oil 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