What’s up, fellas.
Gold prices closed at $1475.990 after placing a high of $1480.50 and a low of $1474.150. Overall, gold could not define any specific direction on Tuesday as it closed at the same level. Gold started its day at $1475.9.

Gold remained steady on Tuesday amid the lack of informational details about the phase-one deal between the US & China which kept traders from making any firm bets. Investors are keen to know more about the agreement finalized between the two largest economies of the world last week.

According to the White House top adviser, the phase-one deal has been absolutely completed while the Chinese officials have been more cautious and emphasizing that the trade dispute with the US has not been completely settled. This can all be cleared once the trade deal documentation would be signed, and terms of the deal would be published.

GOLD is considered a safe investment in times of political & economic uncertainty and has gained a lot this year in this regard. Last week has not been an ordinary week for gold prices as there were three back to back bearish events for gold.

On December 11, Federal Reserve decided to keep its interest rates on hold after cutting its interest rates three times between July and October. Interest rate cuts always give benefits to gold prices.

On December 13, in British general elections, UK Prime Minister Boris Johnson was re-elected by winning the majority of votes and promised to take Britain out of European Union by the end of January 2020. The futile attempt of the UK to leave the EU over the past three years have made Gold a hedge to Brexit.

On December 15, President of the United States Donald Trump canceled the new round of tariffs on Chinese products that would have added another 15% duty on $160 billion of Chinese imports. The decision was made after agreeing on terms of the phase-one deal with China.

Gold prices have gained more from the US-China trade deal uncertainties throughout the year than from Brexit or Federal Reserve. It was because of the impact of US-China ongoing trade war for almost 17 months, which has weighed on the global economy and caused nearly every central bank to loosen its monetary policy this year, which made gold as a hedge to the slowdown in global economic growth.

Even as trade tensions decreased after the phase-one deal agreement, gold has not seen a massive sell-off because of the weakened US dollar. The dollar has been under pressure due to the Federal Reserve’s decision to keep its interest rates lower throughout the next year.

The increasing trade optimism and weak US dollar are keeping gold prices in a steady position for now. To see a specific change in gold prices, the market would now need some big events like the phase-one deal details.

Daily Technical Levels
Support Resistance
1477.41 1483.71
1474.83 1487.43
1471.11 1490.01
Pivot Point: 1481.13

Gold’s sideways trading continues as investors didn’t find any solid reason to determine trends ahead of the December holidays. Gold is consolidating in a narrow trading range with immediate support around 1,474 and resistance at 1,480. Breakout of this range will determine further bias for gold. Closing of candles below 1,474 may drive more selling until 1,469. Let’s keep eyes on 1,474 today as gold may trade bullish above and bearish below this level today.

Good luck!