Us war risk downgrades, gold under pressure to weaken more losses brewing?

International spot gold was trading at $1, 548.40 an ounce in early Asian trading on Friday. After extending its slide to a low of $1,540.10 an ounce in the previous session, gold has rebounded slightly from that low. At this point in the session, gold prices have come under pressure, again pushing below the $1,550 mark and now touching a low of $1,547.03 an ounce.

Shanghai gold exchange gold T+D rose 0.36 percent to 346.70 yuan per gram in early Asian trading. Trading opened at 346.20 yuan per gram.

Gold T+D fell 11.40 yuan, or 3.19%, to 345.44 yuan per gram on Thursday, with the highest bid of 354.35 yuan per gram and the lowest bid of 344.0 yuan per gram.

International spot gold, meanwhile, fell $3.90, or 0.25%, to $1556.17 an ounce, dipping as low as $1539.78 and rising as high as $1561.23 to close at $1552.30.

Gold fell overall in the previous session as risk aversion eased on bets the U.S. and Iran would not seek further conflict.

On the afternoon of January 9, the U.S. House of Representatives passed the war powers resolution with 224 votes in favor and 194 against, with 13 abstentions. The resolution, which would limit President trump’s authority to take military action against Iran, would then go to the senate.

The resolution was sponsored by representative Elissa Slotkin, a Michigan democrat. Slotkin is a former CIA intelligence analyst and an expert on Shiite militias. The bill would limit trump’s ability to make unilateral war decisions under the war powers act of 1973.

Holdings of the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 1.05 percent on Wednesday, reflecting a drop in demand for the precious metal as investors sought a safe haven and us stock indices hit record highs as the conflict between the US and Iran in the Middle East eased, while optimism about trade between China and the US grew.

Rising risk appetite means safe assets such as gold have been hit by profit-taking and this is likely to continue for some time, said standard chartered analyst Suki Cooper.

At the same time, market analysts said if global economic and trade conditions continued to improve, it would further depress safe-haven demand for gold. As a result, the rally since the end of last year is likely to face a reversal after a daily “cloud cover” technical pattern, followed by initial support at the 10-day moving average of $1542 an ounce.

From a technical perspective, the daily chart shows the gold price falling, the MACD red kinetic energy column shrinking, the KDJ random index continues to decline, the trend of gold retracting kinetic energy strengthened, the next incoming materials continue to decline.

On the 4-hour chart, gold prices remain under pressure, with the MACD green momentum column narrowing slightly and the KDJ random index slightly up, indicating that gold may temporarily rebound from its lows.

Fundamentals favorable factors:

On the afternoon of January 9, the U.S. House of Representatives passed the war powers resolution with 224 votes in favor and 194 against, with 13 abstentions. The resolution, which would limit President trump’s authority to take military action against Iran, would then go to the senate.

2. US President Donald Trump says sanctions against Iran are in place and the Treasury Department will issue a statement on sanctions against Iran. He does not believe the crash of a Boeing passenger plane bound for Ukraine in Iran shortly after takeoff from Tehran was the result of mechanical failure. Mr. Trump also said there was intelligence that Mr. Suleiman was trying to blow up the American embassy.

The Canadian prime minister Justin Trudeau says there is evidence that a Ukrainian passenger plane was shot down by an Iranian missile. British prime minister Boris Johnson also said there was a lot of information that the Ukrainian plane was shot down by an Iranian surface-to-air missile.

4. Rocket fire near Balad air base north of Baghdad.

  • The secretary-general of the Iraqi militia, the justice league, Hazari, said there would be an “earthquake scale” response to the US for muhandiz’s death, as big as Iran’s response to Suleiman.

Fundamental negative factors:

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.

2. The head of Iran’s civil aviation organization said it was an “illogical rumor” that the Ukrainian airliner could not have been hit by a missile.

The House of Commons has approved the third reading of prime minister Lyndon Johnson’s Brexit deal bill, which will now go to the house of lords.

4. U.S. President Donald Trump said on Thursday that the United States 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.

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