- The US-EU trade tussle, sluggish macro divert investors back towards safe-havens.
- Absence of developments surrounding the US-China trade truce added strength into Gold’s upside.
While US-EU trade tension and broad weakness in the global data continue to support Gold prices, lack of fresh clues on the recently agreed trade truce between the US and China added strength in the yellow metal’s quote.
Having recently surged to the high of $1,436, close to the previous week’s multi-year top of $1438.66, the bullion prices now settles around $1429 during early Wednesday morning in Asia.
Following the absence of fresh directions concerning the US-China trade ceasefire, that was questioning the market optimism, the latest trade rift between the US and the EU renewed global trade tension.
Adding to that, data from top-tier economies have remained sluggish while highlighting the need for further monetary easing, which in turn push investors to risk safety. Furthermore, an explosion in Tunisia could also be spotted as an extra driver towards the precious metal.
The US 10-year treasury yield, the global benchmark for risk tone, again slumped beneath 2.0% mark while taking the rounds to 1.976% by the press time.
Technical Analysis
Should the bulls take charge beyond last-week high around $1439, May 2013 top surrounding $1488 could flash on their radars. On the contrary, a downside break of $1412 can trigger fresh profit-booking towards $1400 and then to recent swing low near $1382.
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