Gold Soars Amid Sino-US Trade Uncertainties – Brace for Next Signal
Arslan Butt • 1 min read
During the early Asian session, the safe-haven metal prices were flashing green, mainly due to the increased uncertainties surrounding the United States and China trade deal, and the unrest in Hong Kong in focus.
At the Sino-US trade front, officials from the United States, including President Donald Trump and White House Economic Adviser Larry Kudlow, show a willingness to raise tariffs on Chinese goods if the Phase 1 talks fail. Moreover, they have also made it clear that the existing tariffs could reduce only after the deal gets confirmation.
The United States President Donald Trump called the dragon nation cheaters and stated that the US will impose more tariffs on China if the trade deal will not complete.
Political unrest in Hong Kong continues to receive some attention due to police battling pro-democracy protesters at various university campuses in the city. Several transport links, schools, and many businesses are closed this week in the wake of intensifying violence. The news sent Hong Kong stocks down more than 4% so far during this week, whereas the safe-haven gold gained.
GOLD has formed three white soldiers on the 4-hour chart which is suggesting chances of a bullish reversal in gold. Besides, the Doji candle around 1,450 may drive more buying in gold.
Daily Support and Resistance
Pivot Point 1461
For now, the precious metal may trade upward to target 1,466 and 1,469. While on the lower side the support stays at 1,457 and 1,450 areas.