- Recovery in market sentiment triggered the previous pullback.
- Investors remain cautious ahead of the key US-China meet.
Given the global traders’ wait for details from the key US-China trade negotiations, Gold is on the rounds near $1281.30 during the early Asian session on Thursday.
The bullion is considered safe-haven and often rises in times of uncertainty.
Despite ticking up to a three-week high, the precious metal couldn’t hold the gains yesterday after equities turned positive and market sentiment improved during late hours.
The global barometer of risk tone, the US 10-year treasury yields, grew more than two basis points to 2.485% but is unchanged since Thursday’s close.
With the US President Donald Trump’s tariff hike threats on Chinese goods offering a bump in the previously smooth trade talk journey, investors remain cautious ahead of China’s Vice Premier Liu He’s Washington visit to discuss further developments on the much-awaited trade deal.
There have been noises that China won’t surrender to the US and the Trump administration might secretly adopt soft stand despite tariffs on Chinese goods. However, nothing has been confirmed from the official sources as the meeting between the US and Chinese lawmakers is yet to take place.
Technical Analysis
While $1289 can offer immediate resistance to the yellow metal, a descending trend-line from late-February and 50-day simple moving average (SMA) may restrict further upside around $1291/92, a break of which could recall 100-day SMA level of $1295 and $1300 on the chart.
Meanwhile $1280, $1273 and a longer-term upward sloping trend-line at $1272 can question bears ahead of pleasing them with $1253 figure including 200-day SMA.
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