- Nervousness ahead of Trump-Xi meeting prompts some safe-haven buying.
- A modest USD weakness provides an additional boost and remained supportive.
- Positive equities seemed to cap gains ahead of the US macroeconomic releases.
Gold surrendered a major part of its early gains, albeit has managed to hold above the Asian session lows ahead of the highly anticipated US-China trade talks on Saturday.
The precious metal regained positive traction on the last trading day of the week and built on the overnight goodish bounce from levels just below the $1400 psychological mark, led by conflicting trade-related headlines.
Media reports suggested that the US and China have tentatively agreed to another truce, but the optimism quickly faded after the US President Donald Trump threatened more tariffs if no progress is made this weekend.
Uncertainty over the progress in trade talks between the world’s two largest economies continued driving safe-haven flows and turned out to be one of the key factors that provided a minor boost to the precious metal earlier this Friday.
This coupled with a modest US Dollar weakness provided an additional boost and lifted the dollar-denominated commodity to intraday highs, around the $1424-25 region, though positive mood around equities capped any follow-through.
Moving ahead, Friday’s US economic docket – highlighting the key release of Core PCE price index, personal income, will now be looked upon for some short-term trading opportunities later during the early North-American session.
The key focus, however, will be on the outcome of the crucial Trump-Xi meeting, which is likely to influence the broader market sentiment on Monday and eventually provide a fresh directional impetus to the yellow metal.
Technical levels to watch
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