Gold Prices Rise as Cooling Trade War Worries Weigh on US Dollar

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CRUDE OIL & GOLD TALKING POINTS:

  • Gold prices rise as ebbing commerce warfare worries damage US Dollar
  • Crude oil prices unable to maintain sentiment-driven restoration
  • Risk urge for food tendencies, headline move in focus to start the week

Gold costs turned greater Friday as enhancing danger urge for food triggered a reversal of haven-seeking capital flows buoying the US Dollar, sending the forex decrease and providing a raise to the perennially anti-fiat yellow steel. Investors’ rosier disposition mirrored hopes for de-escalation in the trade war between the US and China.

Crude oil costs tried to rally intraday however the transfer failed to search out follow-though, with the WTI contract heading into the weekend little-changed. Early beneficial properties seemed to be sentiment-driven, with commodities as an asset class having fun with an enchancment in broader danger urge for food.

MARKET SENTIMENT TRENDS, HEADLINE RISK IN FOCUS

Looking forward, a lull in scheduled occasion danger sees more likely to preserve danger on/off dynamics as the main driver of value motion. A transparent-cut lead is absent right here as properly nevertheless, with FTSE 100 and S&P 500 futures buying and selling conspicuously flat earlier than markets in London and New York come on-line.

On stability, this may translate right into a consolidative session. Traders can be sensible to stay vigilant nevertheless. A step again towards the brink of broader commerce wars or renewed turmoil in rising market belongings could also be not more than a single headline away. Proceeding with warning appears prudent.

Learn what other traders’ gold buy/sell decisions say in regards to the value development!

GOLD TECHNICAL ANALYSIS

Gold costs try a tepid restoration after discovering help under the $1200/ouncesfigure. A each day shut above former help at 1204.59 would break the near-term down development, paving the best way for a retest of the 1236.66-40.86 space. Immediate help is at 1160.37, the August 16 low.

Gold Prices Rise as Cooling Trade War Worries Weigh on US Dollar

CRUDE OIL TECHNICAL ANALYSIS

Crude oil costs proceed to mark time above help within the 63.96-64.26 space. A each day shut under this barrier initially exposes 61.84. Alternatively, a flip again above development line support-turned-resistance at 68.57 opens the door for an additional problem of the 69.89-70.41 zone.

Gold Prices Rise as Cooling Trade War Worries Weigh on US Dollar

COMMODITY TRADING RESOURCES

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the feedback part under or @IlyaSpivak on Twitter



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