- Nervous trading ahead of the key event holds the yellow metal captive after recent declines.
- G20 developments, US data are on the spotlight for fresh impulse.
While latest comments from the US Treasury Secretary triggered some risk-off during late-Wednesday, activating the yellow metal’s pullback, Gold prices remain mostly flat around $1408 amid Thursday morning in Asia.
Yesterday, the US Treasury Secretary Steve Mnuchin said that he sees brighter chances of the US-China trade deal for which 90% task is already done. His comments pleased investors ahead of the key G20 meeting Japan that’s becoming even more important due to the likely trade talks between the US and China.
However, the global news wires seem to have dried off-late as lawmakers travel to the venue. As a result, investors await more clues as to how the US and China can reach the trade deal while meeting on a Saturday dinner.
10-year US Treasury yield, followed to understand global risk sentiment, holds tightly to 2.05% after recovering in previous day.
Elsewhere, Reuters’ news that India’s gold consumption is declining for the third straight month also weakened the bullion prices because the Asian nation is among the yellow metal’s top buyers.
In addition to the G20 developments, first quarter (Q1) gross domestic product (GDP) data from the US will also be the key to watch. The US Q1 2019 GDP is likely to reiterate 3.1% annualized mark on a quarterly basis.
Technical Analysis
While $1400 round-figure holds the door for the safe-haven’s decline to 2018 high around $1366, the current year top surrounding $1347 could be sellers’ call during further declines.
On the flipside, $1424 and $1438.66 seem nearby resistances to conquer before heading towards May 2013 high near $1488.
Share
