What’s up, traders.

GOLD prices opened at $1464.080 and have placed a high of $1472.80 and a low of $1462.640 since then. Overall the movement for gold prices has remained bullish throughout the day, and currently, it is moving at $1475.22.

At 18:30 GMT, the Consumer Price Index (CPI) for the month of November was released from the United States and showed growth to 0.3% from the expected 0.2% and supported the US dollar on Wednesday. However, the Core CPI from the US remained in line with the expectations and previous month’s 0.2%.

On the other hand, US President Donald Trump has days left to decide whether to impose tariffs on Chinese goods on 15 December. This move is an action that would not be welcomed in both the US and China.

The top economic and trade advisers of White House, including Larry Kudlow, Robert Lighthizer, Peter Navaro, and Treasury Secretary Steven Mnuchin, will meet US President Trump in the coming days to decide the fate of upcoming tariffs.

Though the decision has not been finalized yet, there is news about the delay in these upcoming tariffs by Washington. If White House allows these tariffs to take effect on 15 December, then the US-China trade talks are likely to come to an end for the remainder of President Trump’s term.

Some trade experts say that the way these tariffs are written will automatically go into effect, or the Trump administration has to act to impose them unless the US trade representative issues a modification notice for these tariffs.

The director of White House National Economic Council Larry Kudlow told the media that “the reality is those tariffs are still on table, the December 15 tariffs, and the President has indicated if the short strokes remaining in negotiations do not pan out to his liking than those tariffs could go back into place”.

This raised the concerns of traders over the completion of the phase-one deal and moved the Gold prices towards the upside.

On Wednesday, Federal Reserve held its interest rates steady and said that it would maintain its rates where they were through 2020. This year Federal Reserve cut its rates three times, and in its open market committee for December, it kept its prices at the current range between 1.50% and 1.75%.

According to the Fed statement, the current stance of monetary policy was appropriate to support the sustained expansion of economic activity, a strong labor market, and inflation near the target of 2%.

The Federal Reserve said that it would continue to watch the data to see if global developments and the muted inflationary pressure affect the US economy. The Fed statement of December meeting had no comments like it had in October’s meeting statement in which it was mentioned that uncertainties about outlook remained. But the December statement had no such information may be because of the raised optimism about the fading away of downside risks like the US-China trade war.

The latest signals from the Fed in its summary of economic projections gave the view that the Fed may not move at all in 2020. All this added in the upward direction of yellow metal prices on Wednesday.

Daily Technical Levels
Support Resistance
1463.64 1473.14
1459.17 1478.17
1454.14 1482.64
Pivot Point: 1468.67

Gold soared to trade around 1,475, having formed three white soldiers pattern on the 4-hour chart. On the upper side, gold may find an immediate resistance around 1,479/82. This looks like a find level to place sell trades. On the lower side, gold is likely to find support around 1,471 and 1,466.

Good luck!