get_geodata_regions(); Gold’s Choppy Session Continues – Trade War Risks Eyed - Forex News by FX Leaders

Gold’s Choppy Session Continues – Trade War Risks Eyed

Posted Friday, November 22, 2019 by
Arslan Butt • 2 min read

Gold prices closed at $1464.32 after placing a high of $1475.610 and a low of $1462.310. Overall the movement of gold remained Bearish that day. Gold prices were driven by the US-China talks on Thursday when there came a piece of news that they were back to negotiations.

From the past few days, the tensions between both countries have increased and gave rise to uncertainty in the market related to progress in a trade agreement.
It was an impression in the market that the Phase-One of the US-China trade deal would not be completed because of the concerns that the US Senate passed legislations on Hong Kong. But on Thursday, the Chinese Commerce Ministry said that China would strive to reach an initial trade agreement with the US as both sides keep communication channels open.

On Wednesday, Chinese Vice Premier Liu He said that he was cautiously optimistic about reaching a phase-one trade deal with the United States. There were also reports about Beijing’s invitation to US trade negotiators for a new round of trade talks ahead of President Donald Trump’s threat to impose more duty on Chinese goods by December 15.

US officials respond to the Chinese invitation with a willingness to meet in person. However, they did not commit to a date yet; they also said that they would be reluctant to travel for talks unless China gave a clear statement to make commitments on intellectual property protection, forced technology transfer, and agricultural purchases.

The main driver of gold was uncertainty about the trade deal, and after China’s positive comments related to the whole Phase-one deal by mid-December, the hopes for an end to trade war emerged again in the market.

GOLD – XAU/USD – Trading Levels
Support Resistance
1459.72 1471.88
1454.97 1479.3
1442.81 1491.46
Key Trading Level: 1467.14

Gold – XAU/USD – Trade Plan
Gold has already tested we previously discussed support level of 1,462. Now it’s consolidating in a narrow trading range of 1,465 to 1,462. Since gold is trading in the oversold zone, and it also has formed a tweezers bottom pattern on the hourly chart, we may see slight bullish retracement until 1,467/69, and from here, we can expect further selling in gold. On the flip side, the violation of 1,463/2 can open further room for selling the until 1,457 area.

Good luck!

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