Gold struggles around 50-day EMA amid US-China trade jitters, USD strength


  • Gold consolidates recent gains amid recent recheck of risk sentiment.
  • US-China likely to sign “Phase One” in December, the US seems to accept Chinese demands.
  • US dollar strength keeps prices under check, Fedspeak has been mixed.

While broad strength of the US dollar (USD) exerts downside pressure on gold prices, uncertainty surrounding the US-China trade relations keeps the decline limited. As a result, the safe-haven seesaws near $1,490 amid initial Thursday morning in Asia.

Ever since the United States (US), monthly employment data flashed better than forecast readings of Friday, the USD bulls seem to have anticipated a stop to the Federal Reserve’s (Fed) further rate cuts. As a result, the greenback registers upbeat despite mixed macros and Fedspeak.

It’s worth mentioning that demand from India, among the world’s top bullion consumers, declines 32% in the third quarter (Q3) of 2019 as per the World Gold Council’s (WGC) recent trend report. The WGC also downgraded its Indian gold demand prediction for the whole 2019 year to around 700 tons, compared with 760 tons the previous year.

Over the US-China trade counter, the “Phase One” deal is likely delayed to December, as said by Reuters, but the story from Fox Business continues spreading optimism amid calls of the US likely to delaying December 15 tariff hike on China’s goods.

Comments from the Fed policymakers (Fedspeak) signal challenges to the economy but holds broad optimism surrounding the present monetary policy and expectations of future recovery.

While a lack of economic data prevails during the day, news concerning the initial trade agreement between the US and China could keep traders entertained.

Technical Analysis

While 50-day Exponential Moving Average (EMA) around $1,492 acts as immediate upside barrier, $1,500 and last week’s high near $1,515 could keep buyers capped then after. On the downside, $1,475 and $1,455 could keep the bullion’s short-term downside capped.

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

GBP/USD hits new 7-month highs as Tories hold the lead

GBP/USD has hit new seven-month highs closer to 1.32 as weekend polls have reaffirmed a solid lead for PM Johnson's Conservatives. Cable dropped on Friday amid upbeat US data.

GBP/USD News

EUR/USD steadying above 1.1050 amid upbeat German export data

EUR/USD is trading above 1.1050, attempting a recovery after Germany reported an increase in exports in October. EUR/UDS dropped sharply on Friday amid upbeat US Non-Farm Payrolls and weak German industrial output. 

EUR/USD News

Forex Today: US-Sino trade tensions prevail, Boris closer to victory, EUR/USD licking its wounds

Trade talks: President Donald Trump has called on the World Bank to stop lending to China, a move that may aggravate tensions, with only six days to go until Washington is set to slap new tariffs on Beijing. Negotiations continue.

Read more

Gold: Sidelined after biggest daily decline in four weeks

Gold is lacking a clear directional bias in Asia, having registered its biggest single-day decline in four weeks on Friday. China's data may embolden President Trump to take more aggressive measures. 

Gold News

USD/JPY treads water around 108.60 ahead of a Big week

USD/JPY keeps its range around 108.60, as the yen bulls look to take advantage of upbeat Japanese Q3 data. Further, negative Treasury yields and S&P 500 futures weigh down on the spot. All eyes on FOMC and Trump's Dec. 15 tariffs. 

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures