- Gold seeks fresh clues to extend the latest recovery beyond multi-year high flashed during the previous month.
- Uncertainty surrounding the US-China trade talks, Brexit and the USD weakness recently contributed to the yellow metal’s rise.
- Today’s Fed speak will offer fresh impulse.
With a lack of fresh trade/political catalysts, Gold prices remain mostly unchanged to $1548 during the early Asian session on Wednesday.
Bullion traders recently turned risk-averse mainly due to the absence of details of the September month trade meeting between the US and China. Adding to the momentum is the US Dollar (USD) weakness on the back of downbeat readings of August month ISM Manufacturing purchasing managers’ index (PMI) form the US.
Further, political drama at the United Kingdom’s (UK) parliament to stop the no-deal Brexit, which recently gained the support of major lawmakers, also added strength to the yellow metal. It should also be noted that downbeat signals from the global central bankers have been another catalyst to support the risk-off.
While trade/political headlines are always on the gold traders’ radar to look for a possible move, speeches from various Federal Reserve officials during the US session will add to the list of the market watchers. Investors will particularly look for signs of the Fed’s rate cut in 2019 considering the US President Donald Trump’s persistent pressure to do so.
Technical Analysis
Unless successfully breaking $1,555, Gold is less likely to aim for April 2013 top surrounding $1,600, which in turn highlights August 30 low near $1,517 and $1,500 for sellers if the quote takes a U-turn from present levels.
Share
