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  • Gold traders struggle over mixed catalysts.
  • US-China trade optimism confronts geopolitical tension concerning Hong Kong, Iran.
  • Recently mixed messages from the global central bankers add to the safe-haven moves.

With the geopolitical tension concerning Hong Kong and Iran crossing wires, optimism surrounding the US-China trade deal seems to fail in luring the Gold sellers. As a result, the yellow metal takes rounds to $1,468 during early Monday morning in Asia.

The latest statements from the United States (US) policymakers, including President Donald Trump and Commerce Secretary Wilbur Ross, have been quite upbeat as far as the phase one trade deal with China is concerned. On the other hand, China’s Xinhua also quoted Vice Premier Liu He to confirm that both the sides had constructive talks.

Even so, the market’s risk-off prevails amid escalating protests in Hong Kong and the US alleging Iran to support terrorism, via developing nuclear weapons and missile programs, as said by the Sky News.

Adding to the investor uncertainty is recent policy signals from the leading global central banks, including the Reserve Bank of New Zealand (RBNZ), Reserve Bank of Australia (RBA) and the US Federal Reserve (Fed). While RBNZ’s surprise no rate cut couldn’t stop Governor Adrian Orr from leaving the doors open for further rate cuts needed, downbeat fundamentals signal additional easing bias of the RBA. Further, Fedspeak has been upbeat off-late with the present policy gaining more applauds that usual.

Given the absence of major data/events on the economic calendar, traders will look towards trade/political headlines to determine near term risk sentiment. It’s worth mentioning that S&P 500 Futures is -0.12% by the press time.

Technical Analysis

While a 100-day Exponential Moving Average (EMA) level near $1,463 limits the bullion’s immediate declines, 50-day EMA near $1,483, followed by $1,500 round-figure, could keep short-term buyers away.