• Adds to last week’s heavy losses despite escalating US-China trade tensions.
• A subdued USD demand also does little to ease the prevailing bearish pressure.
Gold edged lower at the start of a new trading week and is currently placed at over two-week lows, around the $1275-74 region.
The precious metal traded with a negative bias for the fifth trading session and added to last week’s heavy losses to extend its sharp retracement slide from levels just above the key $1300 psychological mark.
Meanwhile, a subdued US Dollar price action failed to lend any support to the dollar-denominated commodity, with bulls even shrugging off a turnaround in the risk sentiment during the early European session.
Reports that China will suspend business with all supplies who agreed to halt supplying Huawei added to the recent escalation in the US-China trade tensions and fueled concerns over a full-blown trade war.
A fresh wave of global risk-aversion trade was evident from a sharp fall in equity markets and reinforced by retreating US Treasury bond yields, albeit did little to revive the precious metal’s perceived safe-haven demand.
It would now be interesting to see if the commodity is able to find any support at lower levels or the ongoing slide marks the resumption of the prior bearish trend amid absent relevant market moving economic releases from the US.
Technical levels to watch