- Gold stops three-day-old run-up amid a lack of major trade positive.
- Comments from the US Trade Secretary question week-start trade optimism.
- A lack of major data/events, Japanese holiday limit market moves.
Mixed sentiment concerning the US-China trade deal seems to limit the market’s recent momentum, which in turn stops gold from extending its latest run-up. However, holidays in Japan and a lack of major data/events limit the yellow metal’s moves as it makes the rounds to $1,513 during early Monday.
The bullion initially stopped the previous three-day rise as weekend comments from the United States’ (US) President Donald Trump and the Trade Secretary Wilbur Ross have been increasing the odds for a phase one trade deal with China. However, recent comments from the Trade Secretary Ross highlighted the underlying tension between the world’s top two economies despite citing possibilities of an initial deal.
Prices recently benefited from the US Dollar (USD) weakness and the global rush towards easy money policy. Not to forget mixed data from the US and mixed statements from the key risk catalysts, namely the US-China trade deal and Brexit.
While the absence of Japanese traders has caused a pause in the US 10-year Treasury yields at 1.714%, Asian stocks and S&P 500 Futures seem to register a mild risk-on sentiment.
Moving on, the global economic calendar is almost quiet with no major data/events in the spotlight. However, trade/Brexit headlines will offer near-term trade direction.
Technical Analysis
In addition to a monthly falling trend line, at $1,518, late-September high surrounding $1,535 and $1,557 become key upside barriers to watch during the safe-havens’ rise. Meanwhile, a five-week-old rising support line, at $1,485, could restrict near-term declines, a break of which could recall October low near $1,491 on the chart.
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