Gold clings to recovery gains above $1550, trade deal details eyed

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  • Gold consolidates the recovery above $1550.
  • US dollar comeback across the board caps the upside.   
  • Markets await US-China trade deal signing and US data.

Gold (XAU/USD) stalled its steady recovery mode near $1554, now consolidating the recent gains amid cautious market mood and ahead of the key US-China phase one trade deal signing ceremony.

The yellow metal extended its rebound from two-week lows of $1536.30 into a second day on Wednesday, helped by unnerved markets amid increasing doubts over the impact of the phase deal. Markets also believe that despite the preliminary agreement, the trade war is far from over.

However, the further upside was capped in gold prices, as the US dollar witnessed some fresh buying interest across the board over the last hours. Attention now remains on the details of the phase one deal the US Treasury Secretary Mnuchin said would be released later in the day and will be fully enforceable.

Meanwhile, the US PPI data and the Fed’s Harker speech will be also closely eyed for fresh trading impetus.

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