Gold Investment: Two new pieces of news on China-us trade! Gold trading more narrow, big move approaching?

Spot gold hovered around $1,930 in the Asian session on Wednesday, losing the 1920 mark yesterday, while silver came under slight pressure during the day.

Spot gold fell for a third day yesterday after losing key $1,920 support as positive news on Us-China trade and vaccine development boosted risk sentiment.

Now, there is new news on the trade situation between China and the US.

In an interview with Fox News, White House economic adviser Scott Kudlow said trade Representative Robert Lighthizer is satisfied so far that China is complying with the trade agreement.

He said China is buying more agricultural products, helping to create jobs in the United States. He described, official talks between the two countries very well, and is refers to the regular review meeting.

Mr Kudlow also said the FOCUS of the US on the first phase of a us-China trade agreement was shifting to intellectual property theft, forced technology transfer and basic issues of fairness and reciprocity. ‘The situation in China is complex, with many problems,’ he added.

The US Department of Agriculture announced on the same day that Chinese importers were buying more US agricultural products. According to the ministry of agriculture of the daily sales report, Chinese importers purchase of 408000 metric tons of corn and 204000 metric tons of soybeans, all began on September 1, 2020-21 marketing year shipment. It was China’s biggest single day corn order in nearly a month.

Mr. Lighthizer and Treasury Secretary Steven Mnuchin met with Vice Premier Liu He on Monday to discuss implementation of the first phase of the trade agreement, the first formal dialogue between the two sides since early May, the USTR said Monday. The statement said the two sides agreed that progress had been made on trade issues and pledged to make the first phase of the trade agreement reached in January a success.

Technical analysis:

The dollar

On the daily chart, the dollar index.DXY was trading around 93.10 as it tried to stabilize after yesterday’s losses. The daily chart MACD red kinetic energy column was basically stable, and the KDJ random index broke above the 50 level, indicating that there was still room for a rebound.

On the 4-hour chart, the DOLLAR index has been narrowing its trading range and is hovering around the 93 mark, close to its 100-session moving average. The MACD green momentum column showed initial signs, with the KDJ random index falling below the 50 level, indicating strengthening bearish momentum for the dollar, short term or further downside.


On a daily chart, gold traded in a narrow range after three straight days of losses and was trading near $1,930. The daily chart MACD green momentum column was largely stable, with the KDJ random index falling below the 50 level, indicating that bearish momentum for gold remains and further downside caution is still needed.

On the 4-hour chart, gold’s trading range has been narrowing, hovering between the 100-phase and 200-phase moving averages. The MACD red momentum column is very weakened and the KDJ random index is trying to break above the 50 level, indicating weak bullish momentum for gold, short term or further consolidation.


On daily charts, silver has been narrowing its trading range and is hovering around 26.50. The daily MACD green momentum column expanded slightly, with the KDJ random index trying to break below the 50 level, indicating that bearish momentum has increased for silver and caution for further downside.

On the 4-hour chart, silver appears to be forming a moving lower high and low, currently trading below the key 100-session average. The MACD green momentum column is very weak, with the KDJ random index trading below the 50 level, indicating weak bearish momentum for silver, short term or further volatility.

Fundamentals positive factors:

U.S. consumer confidence fell to its lowest level in more than six years in August as households fretted about the job market and incomes.China has accused a U.S. U-2 high-altitude surveillance plane of trespassing into a no-fly zone over live-fire drills in China on Tuesday, calling it “a naked and provocative act.”

TikTok filed a lawsuit on August 24 local time against the TRUMP administration’s first executive order issued on August 6. TikTok argued that the US government had not given the company a fair chance to defend itself and that President Trump’s executive order did not apply to TikTok and was illegal.

The Republican National Convention officially nominated Incumbent President Donald Trump as the Republican Party’s 2020 Presidential candidate on Thursday afternoon, EDT. He accused Democrats of “novel Coronavirus to steal our election”. He also warned of widespread fraud in postal ballots.

Fundamentals negative factors:

  1. Holdings in the SPDR Gold Trust, the world’s largest Gold ETF, fell 3.51 tonnes, or 0.28 per cent, from the previous session’s current position of 1248.87 tonnes.
  2. The US Food and Drug Administration has approved the emergency use of plasma in COVID-19 patients, amid reports that the Trump administration may expedite the approval of a vaccine candidate.
  3. China and the US made a phone call. On the morning of August 25, Liu He, member of the Political Bureau of the COMMUNIST Party of China (CPC) Central Committee, Vice Premier of the State Council and Chinese leader of the China-Us Comprehensive Economic Dialogue, spoke by telephone with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. The two sides held constructive dialogue on strengthening macroeconomic policy coordination and implementing the first phase of the economic and trade agreement between the two countries. The two sides agreed to create conditions and atmosphere to continue to push forward the implementation of the first phase of the China-Us economic and trade agreement.
  4. Us business activity rebounded sharply in August to its highest level since early 2019, data showed on Friday, with a rebound in new orders in both manufacturing and services.

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