On Tuesday, the precious metal gold prices edged lower as forecasts of resolute trade discussions between the United States and China supported risk desire, while traders pocketed profits ahead of further updates.
The precious metal gold also sank 0.2%, to $1,454.20 per ounce as investors moved their funds into the stock markets, the higher-yielding assets these days. Consequently, the global stock indices surged higher on Tuesday as traders anticipated a speech by President Trump on trade policy during the U.S. session.
Investors will be closely following Trump’s speech to have a clear stance on the U.S. China tariff rollover, and the EU auto industry tariffs delay.
EU leaders said Trump was supposed to declare this week he was holding the tariff ruling on cars and auto parts shipped from the European Union probably for another six months. That’s raising anticipations about the president’s speech following in the day about the long-drawn trade war with China.
XAU/USD – Daily Technical Levels
Pivot Point 1,462.77
Gold is trading in a bearish channel, which is keeping it supported around 1,448 level. It’s also extending resistance at 1,456 area. The bearish channel clearly suggests strong chances of further sell-off in the gold prices.
On the lower side, the bearish breakout of 1,448 level can extend selling further until 1,444 level. But for the bearish breakout, we need a solid reason that we can’t expect after looking at today’s economic calendar.
Therefore, consider staying bearish below 1,456 and bullish above 1,448 to capture choppy trading in gold. All the best!