fxs_header_sponsor_anchor

News

Gold looks to regain $1300 post better China data

  • China positive sentiment renewed buying support for the bullion as the dragon nation is among the largest bullion buyer.
  • US data and risk events could help to provide fresh impulse through $1300.

Gold is taking the bids around $1293.50 ahead of the European open on Monday. The yellow metal recently recovered from near $1287 level during Friday after positive news report favoring the US-China trade deal pleased the bullion buyers. The upbeat sentiment got stretched during early Monday as investors react to China’s welcome figures of purchasing managers’ index (PMI). Risk events and the US data will be in the spotlight going forward.

China is among the top gold buyers and any positive news for the dragon nation could well be reflected over the metal’s prices. With this, comments portraying constructive progress over the US-China trade negotiations by the US Treasury Secretary Steve Mnuchin were welcomed by the Gold buyers.

Recently, China’s PMI once again crossed 50.00 mark that differentiates between the contraction and an increase in the activity after a long time. 

Be it NBS manufacturing PMI or its Caixin counterparts, needless to mention about the NBS non-manufacturing PMI, all of them touched multi-month highs and crossed 50.00 mark, signaling a recovery in the world’s largest industrial player.

Buyers seem happier with China news that they are giving less importance to the risk-on sentiment which should weigh on the Gold prices. The US 10-year treasury yield is currently trading up by nearly 2.5 basis points at 2.44%, signaling improvement in market risk-taking capacity.

While developments surrounding the US-China trade deal could direct near-term risk sentiment ahead of the Chinese delegates’ visit to the US, today’s retail sales and ISM manufacturing PMI from the US could also offer immediate trade direction to the yellow metal prices as they usually have an inverse relationship with the US Dollar (USD).

The US retail sales control group is likely to have grown by 0.4% from 1.1% previous expansion whereas ISM manufacturing PMI can impress greenback buyers with 54.5 figure against 54.2 earlier.

Gold Technical Analysis

The yellow metal’s U-turn from $1286 indicates brighter chances of its revisit to the $1300 round-figure ahead of challenging 50-day simple moving average (SMA) figure near $1308.

However, a downside break under $1286 might not refrain from dragging the bullion to 100-day SMA level of $1278.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.