Gold prices mostly traded in sideways trading range of 1,483 – 1,475 due to lack of market moving fundamentals. Recently, the statement by Trump having no-deadline for the US-China agreement drove US Treasury yields lower and helped in tightening the spread between US Govt. Bond yields & Japanese Govt. Bond Yields. This made gold more attractive that day and hence XAU/USD pair suffered.
A report from Bloomberg turned the table by saying that US & China were moving closer to a trade deal. According to the report, the US & China were under talks to agree on the amount of tariffs that would be rolled back in Phase-one trade deal despite the raised tensions over Hong Kong issue.
China has been continuously demanding the roll back of US tariffs as part of phase-one trade deal which Trump has denied earlier. Yesterday, reports came in favor of trade-deal raised the hopes for phase-one deal completion by mid-December. This happened despite the increased tensions between US & China after the US legislation to punish Chinese officials over human rights issues in Hong Kong.
Gold – XAU/USD – Trade Plan
Technically, the precious metal gold is stuck in a narrow trading range of 1,483 – 1,467. On the 4 hour timeframe, gold is forming neutral candles above 1,472 mark which is extending an immediate support to gold today. Bearish breakout of this level can extend sell-off until 1,467 level.
Pivot Point 1476.72
The RSI and MACD are holding around 50 and 0 respectively, suggesting neutral sentiment of traders. Looks like, traders are going to keep trading choppy session until the NFP is released tomorrow.
Consider staying bearish 1,480 and bullish above 1,472 today. Good luck!