Gold traders stay cautious ahead of US President Trump’s impeachment voting, busy calendar
|- Gold has been choppy since the start of the week.
- Uncertainty surrounding the US-China trade relations, US President Trump’s future and Brexit has been weighing on the risk tone.
- Broad USD strength seems to cap the safe-havens upside.
With the global traders awaiting results of the key events/data, Gold prices seesaw near $1,475 amid the initial Asian session on Thursday.
Among the top-tier events, the US House of Representatives’ voting to impeach President Donald Trump will be crucial. The house is scheduled to hold two voting sessions for abuse of power and obstruction of Congress, as far as the meddling in Turkish politics is concerned. Ahead of the event, the Washington Post says, “Based on public announcements, Democrats have enough votes to approve articles of impeachment against Trump for abuse of power and obstruction of Congress. Wednesday’s action will lead to a trial in the Republican-led Senate, where a two-thirds vote would be required to remove the president from office.”
Following that, a busy calendar including employment data from Australia, monetary policies of the Bank of Japan (BOJ) and Bank of England (BOE) coupled with the second-tier data from the US, Canada and Switzerland will entertain momentum traders.
The market’s risk tone recovered on Wednesday as the US Federal Reserve (Fed) policymakers held their upbeat tone. The same might have helped the US Dollar (USD) to extend earlier recoveries and exert downside pressure on the yellow metal.
However, the latest readings of the US 10-year treasury yields and S&P 500 Futures suggest a cautious sentiment prevails among the market players.
Technical Analysis
21-day Exponential Moving Average (EMA) surrounding $1,471 acts as immediate support while buyers will wait for a clear break of the month-old rising trend line, at $1,489 now.
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