US-China Trade War Keeping Gold Rangebound – What’s Next?
The financial markets are stuck in a narrow range in the absence of major economic events. Similarly, the precious metal GOLD is also exhibiting thin volatility as investors are confused about whether to react on the US-China trade war issue or to take a bullish position before Fed Chair Powell’s speech.
The US-China trade negotiations are yielding no results and as per the recent news, David Malpass, a member of the US trade delegation in Beijing, stated that the March 1 deadline to reach a deal would not be extended. In case both nations fail to come to a mutual agreement, the US tariffs on $200 billion worth of Chinese imports will be expanded to 25% from 10%.
Support Resistance
1303.82 1312.53
1299.44 1316.86
1290.73 1325.57
Key Trading Level: 1308.15
The stronger dollar is keeping GOLD in check. On the technical end, gold is likely to face strong resistance at $1,314. Below this, the metal is highly likely to stay bearish until $1,307 and 1,302.
On the flip side, the bullish breakout of $1,314 is likely to lead gold prices towards $1,326 later this week.
Let’s wait for Powell’s speech and stay tuned for further updates. Good luck!
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