- Bloomberg claims that the White House could announce tariffs as early as Monday.
- Major equity indexes in the U.S. start the day in the red.
- US Dollar Index stays at session lows near 94.50.
The troy ounce of the precious metal gained traction in the last hour and advanced above $1200 as the laters headlines surrounding the U.S. – China trade conflict triggered a flight-to-safety. At the moment, the XAU/USD pair is trading at $1201, adding 0.6% on the day.
According to Bloomberg, three sources familiar with the matter said that the White House could announce $10 tariffs on $200 billion worth of Chinese good as early as Monday. Although the White House hasn’t yet confirmed these claims, the market reacted negatively and the major equity indexes in the U.S. started the day in the negative territory. At the moment, the Dow Jones Industrial Average and the S&P 500 indexes are down 0.12% and 0.17% respectively.
Earlier in the day, the monthly report published by the Federal Reserve Bank of New York revealed that the Empire State Manufacturing Index slumped to 16 in September from 25.6 in August and fell short of the market expectation of 23. Hurt by the disappointing data, the US Dollar Index extended its daily losses and helped the pair preserve its momentum. As of writing, the DXY was down 0.47% on the day at 94.50.
There won’t be any other macroeconomic data releases in the remainder of the day and markets will be keeping a close eye on trade developments.
Technical levels to consider
The next technical resistance for the pair could be seen at $1205 (50-DMA) ahead of $1212 (Sep. 13 high) and $1220 (Aug. 3 high). On the downside, supports are located at $1192 (daily low), $1184 (Aug. 23 low) and $1173 (Aug. 15 low).
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