Gold prices closed at $1472.36 after placing a high of $1475.260 and a low of $1464.75. Overall the movement for Gold remained bullish that day. At 2:00 GMT, the TIC Long-term Purchases from the United States showed a decline to 49.5B from expectations of 70.3B. at 18;35 GMT, building permits showed growth of 1.46M from the expectations of 1.39M. Housing starts remained unchanged from expectations of 1.32M.

On the macroeconomic data front, the yellow metal was not affected much by increased building permits, and housing starts or by the decrease in the long-term purchases from the US.

Movement of the yellow metal was affected for the second day of the week by news related to US-China trade talks. Yesterday Gold prices moved in an upward direction because of China’s concerns over signing the Phase one deal due to Trump’s denial of removing tariffs.

On Tuesday, Trump warned China to sign the phase-one deal on the said date of December 15, and Gold reacted the same on this news as it reacted to China’s lack of confidence over Trump.

US Treasury yields were low for the second consecutive day despite growth in building permits and gave strength to yellow metal prices on Tuesday. Gold is gaining from the past 2 days based on China’s news that they might not sign the deal before Trump’s impeachment inquiry proceedings in US Congress.

After speaking in the cabinet meeting of his administration, Trump threatened that he would put more duties on Chinese Goods by December 15 if the Phase one deal of US-China deal were not signed by then.

This threat came after the reports from Beijing came in that China wanted the US to remove tariffs to get the phase one deal signed. There were also reports about the Chinese disagreement on the sizable purchase of US agricultural products every year as demanded by the US.

Traders reacted to the threat by Trump to China but in a consolidated way as they are used to Trump’s trade threats, and the gold prices moved higher on Tuesday.

GOLD – XAU/USD – Trade Plan

Gold continues to trade bullish at 1,474 levels in the wake of US-China trade uncertainties. On the 4-hour chart, the precious metal has formed an ascending triangle pattern, which is extending it a substantial resistance at 1,474 area along with support at 1,464.

XAU/USD – Technical Levels
Support Resistance
1466.46 1476.85
1460.46 1481.25
1450.06 1491.64
Key Trading Level: 1470.85

Gold is also holding above 50 periods EMA which is likely to support it around 1,470 levels. Overall, Gold’s sentiment seems bullish, but the 1,474 triple top resistance is the foremost hurdle now. A bullish breakout of this level can extend buying until 1,482 level today.