Gold seesaws near $1329 amid changing risk sentiment
- Warnings to China/Mexico disturb the latest improvement in risk tone.
- Lack of data highlights political news for fresh impulse.
Given the recent news reports flashing mixed signals concerning the US-China trade deal, swift in risk sentiment helps the gold prices to recover yesterday’s losses while taking the rounds near $1329 during early Tuesday.
While successful avoidance of Mexican tariffs and likely break of trade impasse at G20 pleased risk takers on Monday, recent warnings from the US lawmakers to Mexico and China seem directing immediate bullion moves.
The US President Donald Trump threatened to levy fresh tariffs on China in case the dragon nation fails to move forward on trade talks at the global leaders’ meet in Japan. Mr. Trump also warned Mexico to perform the undisclosed part of the latest deal.
Elsewhere, Chinese media kept criticizing the US while knowing facts from the China General Chamber of Commerce.
The 10-Year yield of the US treasury is a generally followed indicator of market risk tone. The gauge yesterday grew nearly 6 basis points to 2.14% while showing small gain to 2.15% while writing.
Investors may now look for further clues relating to how the US and China might react when they face each other at G20 after a short break and much drama. It should also be noted that global economic calendar has fewer things to please momentum traders.
Technical Analysis
Sustained break of March month high, around $1327.80, becomes necessary for the safe haven to revisit $1311 and 21-day simple moving average near $1300, failure to do so can again propel the metal to aim for $1350.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
