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  • Resurgent USD demand kept exerting some downward pressure.
  • Renewed US-China trade uncertainty helped limit the downside.
  • Tuesday’s key focus will be on Fedspeak and Trump’s appearance.

Gold remained depressed through the early European session on Tuesday and is currently placed near three-month lows, around the $1450 region.
The precious metal extended its recent pullback and witnessed some follow-through selling for the fourth consecutive session on Tuesday, also marking its sixth day of a negative move in the past seven amid some renewed US Dollar buying interest.

Focus on Trump’s speech, trade developments

Despite a mildly weaker tone surrounding the US Treasury bond yields, the Greenback managed to regain positive traction on Tuesday and was seen as one of the key factors exerting some downward pressure on the dollar-denominated commodity.
However, the mixed trading sentiment around equity markets, led by renewed US-China trade uncertainty and political unrest in Hong Kong, extended some support to the precious metal’s perceived safe-haven status and helped limit any further losses.
It is worth recalling that the US President Donald Trump said over the weekend that trade talks were going “very nicely,” but there was no agreement yet on rollback of existing tariffs. Hence, Tuesday’s key focus will be on Trump’s appearance at the New York Economic Club.
In the meantime, a scheduled speech by the Fed Governor Richard Clarida might influence the USD price dynamics and contribute towards producing some short-term trading opportunities around the non-yielding yellow metal.

Technical levels to watch