Daily Brief, January 15 – Everything You Need to Know About Gold on Friday!
During Friday's early Asian trading session, the yellow metal managed to stop its overnight losing streak and drew some modest bids around a

In the meantime, geopolitics in the Middle East (tensions between Iran and the US) and the tensions between the UK and China, over the tightening of import laws, added further pressure to the market trading sentiment, underpinning the precious metal. In contrast to this, the optimism over the potential coronavirus vaccines and the probability of an additional US financial aid package have become critical factors that are keeping a lid on any further gains in the yellow metal prices. Gold is currently trading at 1,851.68, and consolidating in the range between 1,845.55 and 1,855.68.
However, the global equity markets failed to stop their overnight negative performance and remained sour, amid Sino-US tensions and growing coronavirus fears. On the Sino-US front, US President Donald Trump recently showed his willingness to impose new sanctions on officials and companies for alleged misdeeds in the South China Sea and imposing an investment ban on nine more Chinese firms with suspected ties to the Chinese military, including planemaker Comac and phone maker Xiaomi (OTC: XIACF) Corp. In return, in response to Foreign Ministry remarks on January 7, the Chinese embassy has accused Washington of “pinning political and ideological labels on economic and trade issues and exploiting its state power to crack down on foreign companies, under the pretext of national security.” These moves will further increase tensions with China, and the fears of a full-fledged trade/political war between the US and China have been weighing on the market trading sentiment and are seen as critical factors that have kept the GOLD prices higher.
Besides this, the reason for the bearish trading sentiment could also be associated with worries about rising numbers of COVID-19 cases and economically painful hard lockdowns. With the increasing pace of new virus cases, the global lockdowns are getting aggressive too. As per the latest report, France has introduced a new nationwide lockdown, while German Chancellor Merkel reportedly wants to toughen the German lockdown. In addition to this, over 22M people are currently under strict lockdown conditions in China’s Hebei province, which surrounds Beijing. The restrictions were imposed after the country posted the largest number of new Covid-19 infections in over five months on Wednesday.

Daily Support and Resistance
S1 1,803.95
S2 1,825.34
S3 1,835.82
Pivot Point 1,846.73
R1 1,857.21
R2 1,868.12
R3 1,889.51
GOLD continues trading sideways, within a broad trading range of 1,862 to 1,829. The precious metal, GOLD, is likely to find immediate resistance at 1,853 and 1,863. On the lower side, the precious metal is expected to find support at 1,833. Violation of this 1,833 support level could open additional room for selling until the 1,820 level today. The 50 periods EMA and RSI are in support of bias of sale. However, the lack of economic events is keeping the market choppy, between the 1,843 and 1,829 levels. Good luck!
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