Several rounds of bombing! In a rare overbought sign, gold T+D fell more than 1 percent, offering a bargain-hunting opportunity.

International spot gold was trading at $1,556.30 an ounce in early Asian trading. Gold retreated further intraday as sentiment temporarily stabilized and now traded as low as $1,556.45 an ounce, extending losses from the previous session’s high.

In early Asian trading, gold on the Shanghai gold exchange fell 1.17 percent to rmb349.87 a gram. The opening price is 355.85 yuan per gram.

Gold T+D rose 9.05 yuan, or 2.62%, to 354.01 yuan per gram on Monday, with the highest purchase price of 355.58 yuan per gram and the lowest purchase price of 346.33 yuan per gram.

International spot gold, meanwhile, rose $13.9, or 0.90 percent, to $1,565.70 an ounce after falling as low as $1,551.40 in the previous session.

Gold surged more than $30 to a high of $1,587.90 a Troy ounce on geopolitical tensions in the Middle East, but quickly pared gains to less than $10 as sentiment stabilized. The rapid escalation in the Middle East following the U.S. killing of Iran’s top general on Friday, particularly the U.S. military’s attacks on Hezbollah guerrillas in Iraq and Syria, could push Iraq further toward Iran. On Sunday, Iran announced a commitment to end restrictions on its nuclear program, as Iraqi lawmakers voted to expel U.S. troops. President trump’s latest tweet says Iran will never have a nuclear weapon. Meanwhile, in response to the U.S. military presence in Iraq, Arab sky news recently tweeted that Hezbollah in Iraq says it will turn U.S. air bases into ruins if trump insists U.S. troops stay. The news certainly spooked markets, and gold remained resilient.

Iraq’s engagement with the United States comes at a time when Washington and Tehran are at loggerheads, complicating the Middle East and spreading risk aversion.

A U.S. general informed Iraq’s defense ministry in a letter that the US coalition would leave the country “as a mistake,” the Pentagon said Monday. Us defense officials insist the troops will remain there.

US President Donald Trump said on Monday he would impose sanctions on Iraq if it demanded US troops leave the country. The United States will not leave Iraq until the airbase is paid for in Baghdad.

The next step is to keep a close eye on events in the Middle East, where any unexpected news could spark another upheaval.

Wayne Ko Heng Whye, head of research and education at Fullerton Markets, wrote on Monday that gold had climbed as high as $1,588 an ounce, its highest level since 2013. With risk aversion likely to persist for some time, investors may be able to buy gold on dips as prices fall.

At the same time, analysts pointed out that short-term technical gold has been overbought, nearly 20 years since gold has been overbought only three times, the current correction is also mainly overbought nature of the callback.

Credit Suisse expects support for gold to continue even before the recent escalation in us-Iran tensions. By 2020, the average price of gold is expected to be around $1,570 an ounce.

From a technical point of view, the daily chart shows a sharp drop in gold prices, the MACD red momentum column remains unchanged, and the KDJ random index drops, indicating that the gold rally has stopped and entry materials will continue to fall slightly.

As can be seen from the 4-hour chart, the gold price has maintained the trend of correction since its high. The MACD green kinetic energy column is either off or on, while the KDJ random index is slightly lower, indicating that the short-term downward kinetic energy of gold is enhanced, and then the incoming materials continue to carry out the correction.

Fundamental favorable factors:

1. “never threaten Iran,” Iranian President Hassan Rowhani said on Twitter on Monday in response to U.S. President Donald trump’s threat to strike 52 Iranian targets. Trump said on Twitter that Iran will never have a nuclear weapon.

2. In a letter to the Iraqi military on Monday, the U.S. military said it was preparing to withdraw from Iraq “out of respect for Iraq’s sovereignty.” The reporter saw a copy of the letter and confirmed its authenticity. U.S. defense secretary George esper later denied there was a withdrawal plan. James Millay, chairman of the pentagon’s joint chiefs of staff, explained that the letter was genuine but should not have been sent at this time. Miley said it was a mistake by the head of U.S. central command, general Mackenzie.

France’s foreign minister said Monday there was a real risk of war in the Middle East if tensions did not ease, but there was still room for a diplomatic solution to the Iran crisis.

Vice President Mike Pence will deliver a speech on U.S. policy toward Iran on Monday, White House officials said Monday. Senate aides say President Trump will hold a closed-door briefing on Iran for the full Senate on Wednesday. senate republican leader mitch McConnell said defense secretary David esper, chairman of the joint chiefs of staff James Millay and secretary of state Mike Pompeo will brief the senate on Iran.

US President Donald Trump said on Monday the US would strike back if Iran took any further action. Sanctions will be imposed on Iraq if it asks the United States to pull out, and intelligence on the killing of Iranian officials will be considered.

Fundamental negative factors:

European Union foreign ministers will hold an emergency meeting in Brussels on Friday to discuss ways to salvage the Iran nuclear deal, two EU diplomats said on Monday.

On Friday, U.S. construction spending rose at a 0.6 percent monthly rate in November, up from minus 0.8 percent and expectations of 0.3 percent. That suggests the housing market remains healthy.

New claims for state unemployment benefits fell by 2,000 in the week ended December 28 to a seasonally adjusted 222,000, compared with an expected 225,000, the labor department said on Thursday. The four-week moving average of new claims rose 4,750 to 233,250, the highest since January 2018. Initial claims for unemployment benefits fell slightly, a positive sign for the U.S. labor market.

The conference board’s consumer confidence index for December, released on Tuesday, was 126.5, higher than the previous reading of 125.5 and lower than expectations of 128.2, still at a high level, but the data had no positive impact on the dollar or U.S. stocks.

The monthly index of pending home sales in the United States, released on Monday, rose 1.2 percent in November, beating expectations of a 1.1 percent gain. The previous reading was revised to a 1.3 percent decline from a 1.7 percent decline.

The number of U.S. workers filing new claims for jobless benefits fell to 222,000 in the week ended Dec. 21, according to the report released on Dec. 26, below expectations of 224,000 and the previous reading of 234,000. The latest weekly decline largely offset an increase in early hiring in the previous two weeks, suggesting the U.S. job market remains strong, the commentary said.

This trading day key attention:

18:00 eurozone CPI for December

18:00 euro November retail sales

30 Canada November trade account

21:30 U.S. November trade account

23:00 U.S. durable goods orders for November final value

At 10:20 Beijing time, gold T+D was at 349.87 yuan a gram and spot gold was at $1556.30 an ounce.

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