“¢ The incoming trade-related headlines underpinned the commodity’s safe-haven demand.
“¢ Increasing Fed rate cut bets/subdued USD price action remained supportive of the up-move.
Gold built on its steady intraday climb and is currently placed at the top end of its daily trading range, just above the $1335 level.
After the previous session’s late pullback – led by a goodish US Dollar rebound, the precious metal regained positive traction amid reviving safe-haven demand after the US President Donald Trump said that there was not enough progress made in a discussion between the US and Mexican officials.
This was followed by a flurry of trade-related headlines, wherein Trump said that tariffs on China could be raised by another $300 billion if necessary. Responding to the latest threat, China’s Commerce Ministry Spokesman said that China will take retaliatory measures if the US further escalates the trade war.
Apart from this, market expectations that the Fed will have to cut interest rates in 2019 to maintain economic growth remained supportive of the prevailing bullish sentiment surrounding the non-yielding yellow metal. This coupled with a subdued USD price action further underpinned the dollar-denominated commodity and contributed to the ongoing positive move for the seventh straight session.
Thursday’s second-tier US economic releases might fail to provide any meaningful impetus as the market focus now shifts to the release of the closely watched US monthly jobs report – popularly known as NFP, scheduled for release during the early North-American session on Friday.
Technical levels to watch
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