- Market hopes for easing trade tensions is seeing the US Dollar take a backseat, helping to bolster Gold prices.
- Despite the hopeful outcome of the US-EU trade meeting, the US-China trade spat remains undealt with, and the reprieve could be short-lived.
An easing US Dollar is helping Gold prices find their bullish footing for the week, with XAU/USD prices lifting to 1,230.00.
A joint statement from US President Trump and the European Union’s Jean-Claude Juncker promising close cooperation between the two powers to avert a trade war saw a relief rally in broader markets, sending the Greenback lower across the board and giving Gold bugs a much-needed opportunity to bid prices back up.
Gold hit a one-year low of 1,211.00 on July 19th, driven lower by action in US Treasuries as well as a rising US Dollar, but the US Dollar Index could see a resurgence later on Thursday if Initial Jobless Claims (forecast 215 thousand, last 207 thousand) at 12:30 GMT alongside Durable Goods Orders for June (forecast 3.0%, last -0.6%) manage to beat expectations, but for now softness in the USD on easing trade tensions is helping to give Gold a slight boost.
Gold levels to watch
Gold prices have managed to lift away from 1,211.00, but soft double-topping action near 1,235.00 is keeping current intraday action under a tight lid, and bulls will be looking to break through the pattern to start challenging the last major swing high at 1,265.00 from July 9th.
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