Gold traders concentrate more on geopolitical risks than trade headlines

Gold prices begin the week on a positive side while taking the bids to $1,478.60 amid the initial Asian session on Monday. In doing so, traders seem to pay a little heed to US President Donald Trump’s trade positive comments while paying more attention to geopolitical concerns surrounding the US, China, North Korea and the Middle East.

The US President Donald Trump’s optimism surrounding the US-China phase-one failed to please traders as China’s President Xi Jinping responded with a cold heart while disliking the US interference in the internal matters. The same could also be attributed to the US President’s signing of a new defense authorization bill that includes, as per China’s SCMP, measures to strengthen Washington’s ties with Taiwan and slow the lifting of sanctions on Huawei to be lifted.

Further, the Chinese President also spoke to his US counterpart about North Korea, as per Reuters, while suggesting that all parties should come to a settlement.

Read: Xi has accused the United States of interfering in its internal affairs

Earlier, the New York Times came out with the news that the US military & intelligence officials are tracking North Korea's actions by the hour & bracing themselves for a major imminent missile test. In this regard, the US military chief said that they’re prepared for whatever from North Korea.

Elsewhere, a wee journalist from Iran tweeted comments from the ex-Chief of Iranian Army Ground Force while saying that Israel had plans to bomb Iranian nuclear sites last month in the course of Iran protests.

Global traders cheered upbeat US data on Friday, which in turn helped the US 10-year treasury yields to stay positive to 1.92% by the week’s closing.

Markets are likely to stay sluggish during the holiday-shortened week. However, Monday’s US data might offer an active start to the week. Overall, investors will be on the lookout for trade/political headlines for fresh impulse.

Technical Analysis

Unless providing a daily closing below the 50-day Simple Moving Average (SMA) level of $1,477, prices can keep rising towards the monthly top near $1,487.