Gold Sell-Off May Continue as Traders Return to Risk
Gold Price and News
- Gold gave back its recent gains after US economic advisor Kudlow said the US preferred to negotiate.
- Gold chart shows support around $1,316/oz.
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Gold Slips Lower as Trade Tensions Ease, For Now
Safe-haven favorite Gold fell to its lowest level in around a week after US economic advisor Larry Kudlow said that the recent retaliatory Chinese tariffs on US goods were still proposals and that the US preference would still be for negotiations. These views were echoed by the Chinese Ambassador to the US Cui Tiankai would also said that negotiations were preferable before adding that “it takes two to tango”.
And in the ongoing NAFTA talks Canadian Foreign Minister Chrystia Freeland said that good progress had been made between the US, Canada and Mexico, although “we’re not there yet”. Market sources say that that the three countries, led by the US, want to announce a preliminary deal by the end of next week, which would ease tensions further.
After hitting a peak of $1,366/oz in late January, gold faded lower before the recent heightening of US-Chinese trade relations bought back a strong safe-haven bid with the precious metal hitting $1,357/oz last Wednesday. The recent fall back has seen gold trade below the 20- and 50-day moving averages with support now pegged at the 38.2% Fibonacci retracement level at $1,316/oz.
Gold Price Chart Daily Time Frame (September 10, 2017 – April 5, 2018)
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--- Written by Nick Cawley, Analyst
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.