Gold aims to revisit 9-month old support-line as traders concentrate more on positive news

  • News concerning the Aussie election and improvement in the relation between the US, Canada, and Mexico got more attention.
  • Pessimism surrounding the US-China and the US-Iran relations could limit the bullion’s decline near trend-line support.

Gold is on its third negative trading day as it seesaws near $1276.50 ahead of the European open on Monday.

Initial news reports concerning the geopolitical tensions between the US and Iran, coupled with the US-China trade pessimism, pleased bullion traders during early-day.

Though, the gains couldn’t last long as investors focused more on Australia’s surprise election results and optimism surrounding the trade relationship between the US, Canada, and Mexico.

It should also be noted that downbeat report for the German economic from Germany’s Finance Ministry added strength into the US Dollar (USD) that works negative to the Gold’s momentum.

The global risk barometer, 10-year US treasury yields, remains positive near 2.40% during the initial day.

Moving further, traders are likely to keep concentrating on qualitative news reports for fresh impulse due to lack of economic data on the calendar.

There prevails a public speech by the US Federal Reserve Chairman, Jerome Powell, at the Financial Markets Conference, in Florida, which traders may observe closely to predict upcoming moves of the US central bank.

Technical Analysis

Having slipped beneath 21-day simple moving average (SMA), sellers may target an upward sloping trend-line since August 2018 near $1272.50 during further downside, a break of which can further strength bears towards aiming 200-day SMA level of $1257.

Meanwhile, an upside clearance of $1282.50, comprising 21-day SMA, could trigger the quote’s recovery in the direction to $1290 and $1295 while highlighting $1300 round figure then after.

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