Gold clings to 100-day EMA amid a lack of fresh catalysts, US-China tussle in focus

• Gold awaits direction after its first daily negative closing in the week.
• Headlines concerning the US-China trade relations have been mixed.
• The US “Freedom of Navigation” and another funding bill to avoid shutdown recently occupied headlines.

Following its first negative daily closing in the week, Gold prices cling to 100-day EMA while flashing $1,465 as a quote during Friday’s Asian session.

Despite challenges to the US-China trade deal and doubts over the global economy, the yellow metal recently dropped as the US dollar (USD) managed to lure risk-averse traders.

Trade angst intensified after the United States (US) Congress passed the Hong Kong bill. Though, recent signs have been positive with Beijing’s invitation to the US trade negotiators staying intact and expectations that the US may delay December 15 tariff hike. Elsewhere, the US President Donald Trump recently signed a bill to avoid another Government shutdown till December 20, which in turn helps the risk-tone.

On the contrary, Reuters’ news that the US Navy carried out operations in the South China Sea, marked as “Freedom of Navigation” by the official quoted, might push Beijing towards another harsh statement. Further, a report by the German Finance Ministry recently cast doubts on the global economic momentum.

Even so, the US 10-year treasury yields stay mostly unchanged around 1.77% while the S&P 500 Futures also follows the suit while taking rounds to 3,103.

Although trade political headlines will keep markets entertained, activity numbers from the leading global economies will offer intermediate moves on Friday.

Technical Analysis

While sustained trading below 100-day Exponential Moving Average (EMA) level of $1,464 becomes necessary for bears to target monthly low near $1,445/46, the bullion’s near-term upside has been capped multiple times around 1,479/80 that holds the key to $1,500.