International spot gold was trading at $1,559.20 an ounce in early Asian trading on Thursday. Gold has retreated from $1,600 for the first time in nearly seven years to a high of $1,611.20 an ounce and is now back in the $1,559 area after a speech by US President Donald Trump temporarily cooled risk aversion amid tensions with Iran.
Gold on the Shanghai gold exchange fell 1.96 percent to 349.11 yuan per gram in early Asian trading. This trading session opened at RMB 354.00 / g.
Gold T+D rose 4.45 yuan, or 1.27%, to close at 356.08 yuan per gram on Wednesday, with the highest bid of 362.88 yuan per gram and the lowest bid of 350.45 yuan per gram.
International spot gold, meanwhile, rose $8.6, or 0.55%, to $1,577.28 at $1,574.30.
In a rare softening of tone, U.S. President Donald Trump on Wednesday dropped his recent harsh rhetoric against Iran, saying it appeared to be softening its stance as the two sides sought to defuse a dangerous escalation over the Suleiman crisis. The plunge in risk aversion, coupled with a continued rebound in the dollar following Wednesday’s positive U.S. non-farm payrolls data for December, sent gold sharply lower from its session high, which saw it move $60 on the day.
With the US on the brink of war with Iran, US President Donald Trump addressed the American people on Wednesday. In his speech, Mr. Trump said that no us military personnel had been injured in the January 8 Iranian missile attack on an Iraqi base and that the base itself had suffered “minimal” damage. Mr. Trump said the US would immediately impose additional punitive economic sanctions on the Iranian regime, but was open to talks with Iran. Spot gold accelerated its decline, currently trading in the $1,559 / oz area, as risk aversion cooled further in response to trump’s remarks.
US President Donald Trump says Iran appears to be easing the situation less than a day after it attacked a US military base in Iraq.
Mr Trump said the us was open to talks with Iran. “We must work together to reach a deal with Iran that will make the world a safer and more peaceful place,” Trump said. He urged other world powers to break away from the Obama-era Iran nuclear deal and reach a new one.
From a technical perspective, the daily chart shows gold prices falling after surging higher, the MACD red momentum column narrowing slightly, and the KDJ random index continuing to decline. The trend of gold shorts is ready to move and may continue to retreat.
On the 4-hour chart, gold continued to retreat, with the MACD green momentum column expanding and the KDJ stochastic index continuing to decline, indicating that gold would also retreat further in the short term.
Fundamentals favorable factors:
Two katyusha rockets landed in Baghdad’s green zone on Thursday, causing no casualties, Iraqi officials said. The attack appears to have been carried out by Iranian-backed militias that targeted the US embassy. No casualties have been reported.
2. US President Donald Trump said no us military personnel were hurt in the Iranian missile strike on an Iraqi base and that the base itself suffered “minimal” damage. The United States will immediately impose additional punitive economic sanctions on the Iranian regime.
The Islamic revolutionary guard corps (irgc) has confirmed that it fired dozens of missiles at the US Assad airbase in Iraq, state broadcaster CCTV reported on Monday.
4. According to CCTV news, the US airbase in Iraq was hit by rocket fire. Earlier today, missiles were fired from various locations in Iraq, according to a senior us military source in Iraq, in what was described as a series of Iranian attacks on US forces.
Fundamental negative factors:
US President Donald Trump has said the US is open to talks with Iran. He urged other world powers to break away from the Obama-era Iran nuclear deal and reach a new one. Mr. Trump also said the US was ready to embrace peace with all nations seeking it.
The US private sector created 202,000 jobs in December, beating market expectations of 160,000, it was announced on Wednesday. However, despite the strong jobs figures, economists warned that Friday’s official report was not sustainable.
The US trade deficit fell 8.2 percent in November to $43.1bn, the lowest level since October 2016 and the biggest drop since January 2019, it was announced on Tuesday. The deficit is expected to be $43.8bn, compared with $47.2bn previously. The US trade deficit fell to its lowest level in more than three years as imports fell further and exports rebounded, suggesting some stabilization in the US economy by the end of 2019, critics said.
The US ISM non-manufacturing index for December, released on Tuesday, was 55.0. Anthony Nieves, chairman of the ISM’s non-manufacturing business survey committee, said non-manufacturing growth accelerated in December, with respondents positive about potential solutions to the trade situation and easing capacity constraints. However, respondents said they still faced headwinds in terms of labor resources.