Gold: US-China trade optimism to limit the bounce
|Gold is showing some signs of life in Tuesday’s trading so far, as the greenback eased broadly amid a risk-on market environment but US-China trade optimism is set to falter XAU/USD’s rebound. Furthermore, dollar stay bulls cautious ahead of Powell’s Jackson Hole appearance, FXStreet’s Dhwani Mehta reports.
Key quotes
“The yellow metal’s upside attempts appear limited, as the risk-on action on the global markets could weigh on the metal. Gold also remains at the risk of the dollar replicating Monday’s comeback moves, in light of the rally in the Treasury yields.”
“Markets will closely watch out for fresh US-China trade developments and US CB Consumer Confidence data for fresh trading impetus. The main highlight for this week remains the Fed Chair Powell's appearance at the Jackson Hole Symposium.”
“Gold is fighting hard to regain the robust resistance near $1937, the confluence of the 21 and 50-hourly Simple Moving Averages (HMA). The hourly RSI, currently at 52.80, is inching higher, suggesting that the bounce from $1924 lows could extend.”
“Although the bearish 100-HMA at $1947 could offer stiff resistance. Acceptance above the latter, the horizontal 200-HMA at $1955 could be tested. A convincing break above that level is critical to reviving the bullish momentum in the near-term.”
“To the downside, a break below the rising trendline support at $1927 could trigger a fresh drop towards the daily lows. Friday’s low at $1912 could be put at risk, further south.”
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