Gold could regain upside momentum due to trade troubles
Gold prices registered two-week highs above the $1,478 on Wednesday but failed to preserve gains and turned slightly negative on the day. The intraday volatility pickup in the market was due to mixed signals from the trade front which remains in market focus.
On the positive side, Trump said that they continue the trade talks with China and Beijing wants to make a deal, with White House representatives highlighted that negotiations are continuing and progress is being made on the text of the phase-one agreement. But there were also reports that the deal may not be completed this year, which caused a slight wave of risk aversion on Wall Street and lifted gold prices off daily lows.
Against the rising trade uncertainty, the precious metal could stage a more substantial ascent in the near term should investors receive a confirmation of the talks about a delay in the partial deal. The longer the markets wait, the more nervous the investors become. In this context, the bullion may receive a boost if risk off sentiment intensifies any time soon.
As such, the yellow metal could finally regain the 100-DMA which serves as the key local resistance for the last two weeks. Once above this moving average that now comes just below the $1,481 figure, the prices may retarget the $1,500 psychological level.
On the positive side, Trump said that they continue the trade talks with China and Beijing wants to make a deal, with White House representatives highlighted that negotiations are continuing and progress is being made on the text of the phase-one agreement. But there were also reports that the deal may not be completed this year, which caused a slight wave of risk aversion on Wall Street and lifted gold prices off daily lows.
Against the rising trade uncertainty, the precious metal could stage a more substantial ascent in the near term should investors receive a confirmation of the talks about a delay in the partial deal. The longer the markets wait, the more nervous the investors become. In this context, the bullion may receive a boost if risk off sentiment intensifies any time soon.
As such, the yellow metal could finally regain the 100-DMA which serves as the key local resistance for the last two weeks. Once above this moving average that now comes just below the $1,481 figure, the prices may retarget the $1,500 psychological level.
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