Gold posts gains even as Trump delays China tariff increase

Gold is trading in the green despite US-China trade optimism, possibly due to losses in the greenback.
Trump raised hopes of a breakthrough trade deal, sending risk currencies higher against the US dollar - a preferred safe haven in 2018.

Omkar Godbole FXStreet Contributor

Gold is currently trading at a session high of $1,332, representing a 0.27 percent gain on the day, amid risk-on in equities and FX markets.

US Trump tweeted earlier today that the US has made significant progress on key issues like intellectual property in the ongoing trade negotiations with China. As a result, he will be delaying the US increase in tariffs now scheduled for March 1.

The announcement offered clues to the markets that both sides are close to reaching a breakthrough trade deal. As a result, risk assets are reporting gains, with AUD/JPY and S&P 500 futures up 0.30 percent each.

Even so, gold is flashing green, possibly due to weakness in the greenback. As of writing, the dollar index (DXY) is trading on the defensive near the 100-day MA of 96.41.

It is worth noting that the greenback was a preferred safe haven during the height of the trade war. That explains the dollar's decline on fading US-China trade tensions.

Gold Technical Levels

1. R3 1345.04
2. R2 1339.07
3. R1 1333.78
PP 1327.81
1. S1 1322.52
2. S2 1316.55
3. S3 1311.26

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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