“¢ Risk-off mood provides a strong boost to the commodity’s safe-haven status.
“¢ A slump in the US bond yields undermined the USD and remained supportive.
“¢ A sustained move beyond the $1300 needed to confirm any further up-move.
Gold held on to its strong gains through the early North-American session, with bulls now awaiting a follow-through move beyond the key $1300 psychological mark.
The precious metal built on the overnight sharp rebound from one-week lows and continued gaining positive traction for the second consecutive session on Friday amid a fresh wave of global risk-aversion trade.
The US President Donald Trump’s surprise move to impose a 5% tariff on all goods from Mexico intensified about a global trade war and provided a strong boost to the precious metal’s perceived safe-haven status.
The global flight to safety was evident from a selloff across equity markets and reinforced by a sharp intraday slump in the US Treasury bond yields, which further drove flows towards the non-yielding yellow metal.
Meanwhile, a free fall in the US bond yields largely exerted some downward pressure on the US Dollar and remained supportive of the strong bid tone surrounding the dollar-denominated commodity.
It would now be interesting to see if Friday’s upsurge marks a near-term bullish break-out or is still seen as a selling opportunity as market participants still await a fresh update on the US-China trade relations.
Technical levels to watch
Share
