Spot gold continued to climb above the 1540 barrier in Asian trading on Wednesday, pushing through the key 1550 barrier and peaking around $1552. In today’s trading session, the market focused on the details of the us-china trade deal.
Gold briefly fell more than $10 to around 1535 after the U.S. Treasury withdrew its designation of China as a currency manipulator last week in a crackdown on risk aversion, before a report that the U.S. would keep tariffs in place until after the election prompted a small laterally back above the 1540 mark.
Gold is currently trading above $1,540 and could fall further once a “phase one” trade deal is formally signed between the US and China, FXTM said. However, if the details of the deal do not impress the market, gold could rebound. Technical traders will continue to keep a close eye on price movements around $1,555. A daily close below that level should signal a move toward $1,535. Instead, moving above $1,555 can open the door to $1,570.
Phillip Streible, the chief market strategist at Blue Line Futures, said: “trading at higher levels is pretty crowded. When gold rose above $1, 600, it seemed everyone was in the market. But now the market is liquidating positions.”
Streible believes a break below $1,540 could signal a move toward long-term support near $1,504. The market is now in head-and-shoulders mode, which could signal further weakness for some time to come.
On the daily chart, the dollar index is stuck in an extremely narrow range, trading around 97.35, with pressure coming from above the 50-day moving average. According to the technical indicators, the MACD red kinetic energy column turned smoothly, the RSI index remained stable slightly above 50, and the KDJ index approached the overbought level upward.
On the 4-hour chart, the dollar index is trading more narrowly, currently wound around the 200-day moving average, with support below the 100-day moving average of 97.14. Technical indicators showed weakness in the MACD green momentum column, RSI hovered around 50, and KDJ traded below 50, suggesting short-term or continued choppy direction.
On the daily chart, gold is trying to stabilize after last week’s sell-off and is hovering around the 1550 mark, with the main moving averages below in a bullish line. Technical indicators, the MACD red momentum column gradually weakening close to disappear, RSI index hovered above 50, KDJ down below the 50 levels, indicating a loss of momentum.
On the 4-hour chart, after hitting a low of $1,535 the previous day, gold moved in a volatile trend and is now back above $1550, approaching its 50-session average of $1,557. From the perspective of technical indicators, the MACD red kinetic energy column showed initial appearance, the RSI index broke through the 50 levels upward, and the KDJ index went up sharply through the 50 levels.
Fundamentals favorable factors:
The U.S. labor department released data on Tuesday, Jan. 14 that showed the monthly consumer price index rose 0.2% in December and was expected to rise by 0.3%. The core CPI rose 0.1 percent, compared with expectations and expectations of a 0.2 percent increase.
2. senate republican leader Mitch McConnell said on January 14 that the house of representatives could send articles of impeachment to the Senate on Wednesday. The Senate will begin preliminary work on the impeachment process later this week, with the trial likely to begin next Tuesday.
According to the Iraqi interior ministry on the 14th, the Iraqi capital Baghdad north of a military base was hit by 2 rockets. The base is home to U.S. troops training Iraqi forces.
The federal deficit totaled $1.02 trillion in the 12 months to December, surpassing $1 trillion for the first time, according to data released by the U.S. Treasury on Monday.
Fundamental negative factors:
1. The US Treasury Department on Monday (January 13) released its semi-annual report on exchange rate policy, lifting its designation of China as a “currency manipulator”. The report also said continued dollar strength was “worrisome” on the basis that the IMF judged the dollar to be “overvalued” on a basis of real efficiency.
2. According to fox news on Monday, U.S. Treasury Secretary Steven Munchin said trade talks between the United States and China will enter phase two.
White House national security adviser Robert O ‘Brien told Axios on Monday that Washington wants to get talks with Pyongyang “back on track” and implement north Korean leader Kim Jong-un’s “commitment” to the denuclearization of the Korean peninsula.
At the invitation of the us side, Liu he, a member of the political bureau of the communist party of China central committee, vice-premier of the state council and Chinese leader of the comprehensive economic dialogue, will lead a delegation to Washington from January 13 to 15 to sign the first phase of the economic and trade agreement with the US side, said Gao Feng, spokesman of the ministry of commerce, at a regular briefing on the afternoon of September 9. The two teams are in close communication on specific arrangements for the signing of the agreement.