- Concerns over worsening US-China relations assisted gold to rebound from weekly lows.
- The uptick seemed rather unaffected by the upbeat mood around the equity markets.
- A subdued USD demand, weaker US bond yields remained supportive of the move up.
Gold edged higher through the early European session and is currently placed near the top end of its daily trading range, around the $1695 region.
Following an early dip to fresh weekly lows, the precious metal managed to regain some positive traction and recovered a part of the previous day’s downfall. The uptick seemed rather unaffected by upbeat market mood, which tends to undermine demand for traditional safe-haven assets, including gold.
The global risk sentiment got a modest lift on Thursday following the release of Chinese trade balance figures. The data fueled speculations that the world’s second-largest economy could recover quicker than anticipated from the coronavirus-induced lockdowns and boosted investors’ confidence.
However, concerns over worsening US-China relations continued lending some support to the commodity. It is worth recalling that the US President Donald Trump has threatened to impose tariffs on Chinese goods in retaliation to its mishandling of the virus outbreak at the early stage.
Adding to this, a modest pullback in the US Treasury bond yields further benefitted the non-yielding yellow metal. This comes amid a subdued US dollar price action, which remained supportive of the prevailing bid tone surrounding the dollar-denominated commodity.
Moving ahead, market participants now look forward to the release of Initial Weekly Jobless Claims from the US. The data might influence the USD price dynamics and produce some short-term trading opportunities later during the early North-American session.
Technical levels to watch
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