Gold ticks higher to $1470, recovers farther from 1-month lows
- Positive trade headlines exerted some heavy downward pressure on Thursday.
- Conflicting reports helped limit further losses, rather regain some traction.
Gold edged higher on the last trading day of the week and built on the overnight late bounce from over one-month lows.
Traditional safe-haven assets – including Gold – took a sharp knock on Thursday in reaction to positive trade-related developments, wherein both China and the US said to have agreed to roll back tariffs on each others' goods in a "phase one" trade deal.
Softer risk tone extended some support
The downward momentum took along some short-term trading stops being placed near 100-day SMA and dragged the commodity back towards early-October swing lows, around the $1460 region, though conflicting headlines helped limit any further deeper losses.
Other reports on Thursday suggested that the subject of rolling back tariffs faced fierce internal opposition in the White House. Further, White House adviser Peter Navarro said that there is no agreement at this time to remove any of the existing tariffs and raised some scepticism about a trade deal.
This resulted in a slightly softer risk tone and extended some support to the precious metal. This coupled with a modest pullback in the US Treasury bond yields and a subdued US Dollar price action further collaborated to a mildly positive tone surrounding the non-yielding yellow metal.
Given the overnight breakdown below a one-month-old trading range support, it remains to be seen if the commodity is able to capitalize on the attempted recovery or meets with some fresh supply at higher levels amid absent relevant market moving economic releases from the US.
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.
