Gold steadily climbs to session tops, back closer to $1430 area
- Reviving safe-haven demand helped regain some positive traction on Thursday.
- The prevalent USD buying interest/US-China trade optimism might cap further gains.
- Traders now look forward to the US durable goods orders data for a fresh impetus.
Gold reversed an early dip during the Asian session on Thursday and climbed to fresh session tops, around the $1427 region in the last hour.
News that North Korea fired two short-range missiles into the sea early on Thursday helped revive the precious metal's safe-haven demand and turned out to be one of the key factors behind the intraday uptick.
However, the prevalent bullish sentiment surrounding the US Dollar, coupled with a positive trade-related development kept a lid on any strong follow-through move for the dollar-denominated commodity.
It is worth reporting that China’s Commerce Ministry confirmed earlier this Thursday that top US negotiators will meet their Chinese counterparts and resume in-person trade talks in Beijing on July 31-August 1.
This coupled with the fact that investors have been scaling back expectations of a 50 bps rate cut by the Fed at its upcoming meeting might further collaborate towards capping gains for the non-yielding yellow metal.
Hence, it will be prudent to wait for a strong follow-through buying beyond weekly swing high resistance near the $1430 region before traders start positioning for any further near-term appreciating move for the commodity.
Later during the early North-American session, the US economic docket - highlighting the release of durable goods orders data, might influence the USD price dynamics and assist traders to grab some short-term opportunities.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
