- Gold steps back from intraday high near $1,874, fails to keep Wednesday’s corrective recovery.
- UK’s Cabinet talks progress with PM Johnson, hopes of an imminent deal stay on the table.
- US President Donald Trump gives ‘friendly health advice to Iran’, turns down Defense Bill, stimulus.
- COVID vaccine distribution in the US has been slower, national lockdown fears gain momentum in Britain.
Gold eases from the day’s top to $1,872 during the initial Asian session on Thursday. The yellow metal managed to benefit from the US dollar weakness and hopes of a Brexit deal the previous day while posting the first positive daily closing in the last four. However, the recently cautious sentiment over the Brexit deal, US President Donald Trump’s warning to Iran and the coronavirus (COVID-19) challenge the bullion buyers.
Brexit in limbo despite all optimistic headlines…
The UK’s readiness to ease fishing terms offered a great push to the Brexit deal negotiations. While the Cabinet discusses progress on the talks, chatters from reporters of The Guardian and Sky News, not to forget the Daily Express, hints that the deal is imminent. Though, nothing official has crossed the wires off-late.
On the other hand, US President Donald Trump cites Iran’s attack in Baghdad to warn the Arab nation of holding it responsible if one American is killed. The Republican Party member also turned down the defense bill while marking non-friendly relations with China and Russia. Additionally, the White House leader obstructed a $900 covid aid package and $1.4 trillion government spending bill while urging Congress to add more funds.
Elsewhere, CNBC quotes the US Federal Health Officials while saying, “Coronavirus vaccine distribution has been slower than U.S. officials hoped.” Also propelling the virus woes are chatters over a widespread activity restriction wave in the UK.
Against this backdrop, S&P 500 Futures look for a clear direction below 3,700 after Wall Street benchmarks closed mixed for Wednesday.
Moving on, Brexit headlines will be the key for immediate market moves while news concerning US stimulus, China and virus may also try to entertain traders.
Technical analysis
Not only the failures to cross 100-day SMA, at $1,899 now, but a short-term rising wedge formation on the daily chart also keeps the gold sellers hopeful. Though, a clear downside break of $1,864 becomes necessary to strengthen the bearish bias.
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