- Gold clings to $1502 amid sluggish data from Australia/China, Hong Kong protests and US-China trade news.
- Trade/political headlines can offer intermediate trading opportunities while economic calendar has few details to watch.
Having surged to the fresh multi-year top near $1,535, and declining afterward on upbeat trade news, Gold takes the rounds to $1,500 mark ahead of Wednesday’s European open.
The yellow metal previously witnessed downside pressure as the US scaled back some of its September 01 tariffs on Chinese goods to December 15 and said that diplomats from both the economies are talking trade.
Though, the upbeat sentiment couldn’t last long as investors shifted the focus back to Hong Kong protests and the economic calendar during the Asian session. Among them, sluggish activity data from China and wage numbers Australia played their roles to help the bullion regain its strength. However, investors remain cautious of buying at high levels when the US-China recently flashed upbeat trade signals. Adding to the downside pressure could be less problematic news from the Middle East that has off-late favored safe-havens.
Reflecting the mood, the US 10-year treasury yields show less momentum around 1.67% by the press time whereas Asian equities are mostly positive while cheering upbeat remarks from the US.
Investors will now be on the lookout of trade/political headlines for fresh direction as there are fewer economic data left for publishing.
FXStreet Analyst, Omkar Godbole, spots lack of momentum around spinning top while indicating bullish exhaustion:
Gold is currently trading largely unchanged on the day at $1,500 and could drop to the 10-day moving average support at $1,484 during the day, as signs of bull market exhaustion have emerged on the daily chart.