Gold stays firm near $1527 amid traders’ indecision
- Gold refrains from further declines even after being under the week-start top.
- Traders doubt recent risk-on amid a lack of fresh catalysts.
Gold refrains from carrying the previous pullback from multi-year highs as it takes the bids to $1,527 during the early Asian session on Tuesday.
In a reaction to the US-China trade war that intensified on Friday, the Bullion surged to the fresh high since April 2013 during the week-start. However, subsequent headlines from the US and China showed the nations’ regret over the renewed pessimism and registered risk-on amid the later part of Monday.
As a result, equities recovered losses and the bond yields also turned positive, not to forget the yellow metal’s pullback and the Japanese Yen’s (JPY) decline.
Though, traders turn skeptical of recent declines and stopped the precious metal’s further selling on initial Tuesday while waiting for fresh clues.
Increasing the doubts could be comments from the Governor of China’s central bank favoring further easing and statements from the Global Times’ editor-in-chief questioning the US President Donald Trump’s comments that he received two very good calls from Beijing.
With this, risk tone again turned heavy and the US 10-year Treasury yields lose nearly one basis points to 1.535% by the press time.
Moving forward, traders will keep an eye over the economic calendar having some second-tier data from Germany and the US while also emphasizing on the trade war headlines.
Technical Analysis
Unless trading successfully below monthly low surrounding $1,481, any decline is considered a pullback towards March 2013 top near $1,617.
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.
