President Trump’s Successes at the Weekend Pushes Gold Below Key Technical Support

President Trump’s Successes at the Weekend Pushes Gold Below Key Technical Support

$XAU, $GLD, $SLV, $USD

Gold fell 1%+ Monday to its lowest in more than a week as USD strengthened and investors opted for riskier assets after the US and China agreed to restart trade talks.

  • Spot gold was down 1.3% at $1,391.29 oz, as of 0411 GMT,
  • US gold futures dipped 1.3% to $1,394.90 oz.

Reopening of trade talks between US-China has made investors look back at growth, we are seeing good support for the share markets across the region and safe-havens are in less demand.

We are likely to see increased volatility in here, as Gold prices have pulled back from an important technical resistance at $1,430, that could mean that we will see a test at support at $1,380 next.

Gold rose to $1,438.63 oz on 25 June, its highest since 14 May 2013, as USD weakened and as investors sought safe-haven assets on concerns about the escalation of the nuclear dispute between the United States and Iran.

Prices then fell on hopes for renewed talks to end the trade dispute between the United States and China, the world’s 2 largest economies.

The optimism was realized when the 2 sides agreed Saturday to restart trade talks after President Trump offered concessions including no new tariffs and an easing of restrictions on tech company Huawei.

Further, China has agreed to make unspecified new purchases of U.S. farm products and return to the negotiating table.

The progress made on the sidelines of G-20 Summit between Washington and Beijing lifted global financial markets, denting the appeal for the safe-haven metal.

Further pressuring gold prices, .DXY rose 0.2% Monday, making non-interest bearing bullion more expensive for holders of other currencies.

The downwards price in gold to the trade deal seems logical, but Shayne and I believe that the jury is out on the ultimate result.

Holdings of the SPDR Gold Trust (GLD), the world’s largest gold-backed ETF, fell 0.22% Friday.

Hedge funds and money managers boosted their Bullish stance in COMEX gold in the week to 25 June, the Commodity Futures Trading Commission said Friday.

Among other precious metals, Silver fell 0.6% to $15.21, and Palladium held steady at $1,537.72.

Have a terrific Holiday week.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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