Gold Ignoring the Chinese Risk-On Memo
Gold Latest News and Talking Points
- Gold remains firm despite Chinese President Xi Jinping bolstering risk markets.
- Gold may remain stuck in a range as talks continue.
Gold Mid-Range as US-China Trade Talks Move Forward
Gold traders are seemingly ignoring commentary coming out of Beijing with the precious metal refusing to move lower. Chinese President Xi spoke overnight about the need for ongoing dialogue to resolve the current US-China trade dispute, adding that China would widen access to a range of markets, strengthen intellectual property protection an, lower auto import taxes and expand imports. This more placatory tone set the equity bulls running with gains seen in Europe across the board.
Gold however refused to take a leg lower and currently trades either side of 23.6% Fibonacci retracement level at $1,335.5/oz. and in the middle of the recent $1,301/oz. - $1,366/oz. trading range. The stochastic indicator is also mid-market, but pointing higher, while IG Client Sentiment shows 70.3% of retail traders are long – normally a bearish contrarian signal - but not as long as yesterday.
Gold Price Chart Three Hour Time Frame (September 19, 2017 – April 10, 2018)
DailyFX senior currency strategist Chris Vecchio has published two primers on US-China trade.
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--- Written by Nick Cawley, Analyst