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.

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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