- Gold refrains from further declines amid a lack of fresh catalysts.
- Headlines concerning Hong Kong, the Middle East and US-China trade relations highlight market risk.
- Brexit/receding odds of the US President Trump’s impeachment challenges risk aversion.
Despite on-going doubts concerning the US-China trade deal and geopolitical tensions elsewhere, Gold prices stop further declines below multi-month low as it takes rounds to $1,455 amid the initial Asian session on Tuesday.
While a lack of major catalysts and absence of the US/Canadian traders limited market’s moves on Monday, receding political pessimism at the United Kingdom (UK) and the United States (US) President Donald Trump’s readiness to conquer impeachment charges seem to weigh on the yellow metal. Further, recent headlines from Politico suggests that the US President Trump will drop tariffs on the EU automobiles after the current relaxation period gets over on Wednesday.
On the contrary, the US official’s comment over the Hong Kong protests might push China to reiterate strong retaliation to anyone challenge its “one country, two systems” motto. Also likely adding to the risk-off could be few more traces of uranium from Iran that could lead to fresh US-Iran tension.
Although the US treasury markets were off by the time of writing, losses of Wall Street and the market’s initial reaction to the recent risk events could lead to the bullion’s recovery when the session gets active, hopefully after Tokyo open.
Traders will also keep a close eye on the Fedspeak and the President Trump’s speech for fresh direction while also not ignoring second-tier data on the economic calendar.
Technical Analysis
August 05 low and July 03 high together offer $1,436 as the strong support to watch during the safe-haven’s further declines while $1,474/75 could act as an immediate upside barrier.
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