“¢ Renewed US-China trade tensions boost demand for traditional safe-haven assets.
“¢ A modest USD uptick turns out to be the only factor capping any further up-move.
Gold surrendered a major part of its early uptick and is now headed towards the lower end of its Asian session trading range, closer to the $1280 level.
The precious metal built on Friday’s post-NFP goodish bounce and opened with a bullish gap at the start of a new trading week amid resurfacing US-China trade tensions.
The US President Donald Trump threatened to increase tariffs on $200 billion worth of Chinese goods and China is reportedly considering cancelling the next round of trade talks.
The latest trade-related development dampened investors’ appetite for riskier assets, evident from a slump in global equity markets, and boosted the precious metal’s safe-haven status.
However, a modest US Dollar uptick, which tends to undermine demand for the dollar-denominated commodity, turned out to be the only factor keeping a lid on any runaway rally.
The latest leg of a downtick reinforced the $1287-88 supply zone, making it prudent to wait for a sustained break through the mentioned barrier before positioning for any further up-move.
There aren’t any major market-moving economic releases due on Monday and hence, the USD price dynamics/trade-related headlines would play a key role in influencing the price action.
Technical levels to watch
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