Gold Signal Hits Take Profit – US-China Trade Uncertainties Underpin the Metal
Arslan Butt • 1 min read
The safe-haven-metal prices rose mainly due to the release of weak economic data from China, Japan, and Australia, as well as because of the uncertainties surrounding the United States and China trade deal. A group of unexpected economic weak data provided support for the yellow metal because as we know, gold is a safe-haven asset.
In China, October’s industrial output, retail sales, and fixed-asset investment all released worse than forecast, whereas Japan’s Q3 GDP also grew by less than expected.
At the Sino-US trade front, the uncertainty surrounding the United States and China trade deal is getting darker after the former’s transit in Taiwan waters. In addition, according to a report ob the Wall Street Journal, the United States and China trade negotiations hit a snag over farm purchases.
President Trump recently said that China committed to buying up to $50 billion in US soybeans, pork, and other agricultural products as part of a phase one trade agreement. But China is unwilling to quantify its farm purchases now, watch instantly activated a risk-off sentiment in the American markets that destroyed the Wall Street party.
GOLD – XAU/USD – Technical Outlook
Three white soldiers which were formed on the 4-hour chart have driven the bullish trend in the gold, and it targeted the suggested level of 1,466. At the moment, gold is facing a hard time violating the double top resistance level of 1,467 level, and gold has also formed several Doji, and test bar candles, which are signaling that bulls are exhausted and need a boost from fundamentals to break above.
Daily Support and Resistance
Pivot Point 1462.86
The bullish breakout of 1,467 is likely to open further room for buying until 1,472 and 1,476. On the flip side, failure to break above 1,467 can drive sell-off until 1,457.