- Avoiding war with Iran and relief to Huawei didn’t stop the US from being tough on China.
- FOMC minutes and risk catalysts to watch for targeting a move under medium-term trend-line support.
Although diminishing chances of the US-Iran war and positive news reports from the US and China compress the yellow metal’s gains, upward sloping trend-line limits the Gold’s declines as it trades near $1274 during early Wednesday.
Not only the US President Donald Trump’s readiness to talk to Iran but comments turning down the threat of war from the US Defence Secretary Patrick Shanahan also affected the safe-haven demand of the bullion.
On the other hand, the US offered an intermediate relief to China’s Huawei after banning to trade earlier. That follows the latest comments from China’s ambassador to the US that the dragon nation stands ready to go on the trade negotiation table and import more goods and services from the US.
Additionally, the 10-year yield of the US government bond, considered as a global risk barometer, is within the positive territory to 2.433% by the press time.
However, the New York Times reports that the Trump administration could blacklist Chinese surveillance technology firm continued entertaining risk-prone traders.
Moving forward, minutes of the Federal Open Market Committee (FOMC) might act as a trigger from the economic calendar while developments surrounding the political plays mentioned above could keep the precious metal markets lively.
Technical Analysis
On the break of $1271 support-line, April low near $1265 can act as an intermediate halt during the downturn to 200-day simple moving average (SMA) around $1258/57.
Meanwhile, $1280 and $1288/89 could keep restricting the metal’s near-term upside ahead of fuelling it to current month high surrounding $1311.
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