Trading News since 2005

Gold climbs at a steady pace and touches the $ 1475; Trump’s trade deal doesn’t excite the market

Gold climbs at a steady pace and touches the $ 1475; Trump's trade deal doesn't excite the market

0

The price of spot gold (XAU/USD) rises in moderation in the last trading session of the week, driven by the increased appetite for defensive positions. In this context, the price of the yellow metal climbs around 0.50% and exceeds the psychological threshold of $ 1475, reaching $ 1477 an ounce.

While China and the United States have reported on the scope of a first-phase trade agreement, the announcement has not generated much enthusiasm in the financial markets due to the lack of specific details.

According to the information presented, Beijing will increase its purchases of agricultural goods from the United States, although the amount is unknown, and will implement structural changes in matters related to intellectual property and technology transfer. In return, the Trump administration will suspend the deployment of new tariffs scheduled for December 15 on goods valued at $ 160 billion and cut the tariffs on $ 120 billion in imports in half to 7.5%.

As the White House would leave intact the 25% levies on products valued at 200 billion dollars and as the official date of the signing of the pact is not yet known, investors reacted with skepticism, increasing their bets on defensive assets.

If this news failed to boost the appetite for risk, this suggests that the bullish potential of some markets such as the stock would be running out. A turn in the stock market would pave the way for further progress in the price of gold in the short term. 

Therefore, today more than ever, it is important to closely monitor the evolution of investor sentiment and changes in positioning. A new trend could be brewing.

GOLD TECHNICAL ANALYSIS

Gold continues to develop a falling wedge pattern on the daily time price chart. This formation, if validated, would have bullish connotations for the underlying. For this reason, it is important to closely monitor the resistance in the region of 1477/1480.

Gold price technical chart

The drilling of this technical barrier would activate the configuration of the descending wedge and attract new buyers to the market, and could cause a movement up to $ 1520 and, in extension, up to $ 1557.

Alternatively, if sellers take back the reins of the price action, it is necessary to monitor support at $ 1455. His breakdown would expose $ 1435.

Leave A Reply

Your email address will not be published.