The global stock markets are facing an immense amount of selling pressure as risk-off sentiment continues to dominate the market. The European Union is anticipated to impose tariffs on approx $3.4 billion of U.S. imports on a weekday. The expected tariffs have added to tensions as investors worry about an outright world trade war between the U.S., the EU, and China.
Tensions between the U.S. and China have additionally continued because these 2 largest economies within the world, faced a tit-for-tat over trade tariffs. Earlier on, U.S. President Donald Trump decided to impose tariffs on another $200 billion of Chinese merchandise.
Gold – XAUUSD – Daily Outlook
Gold prices alleviated from fresh lows for the year because the greenback turned negative on weaker U.S. economic figures. Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell by $3.10 or 0.24%, to $1,271.10 an ounce, spiralling to a new 2018 low of $1,263.20.
A sharp retreat within the greenback – from its highest level since last summer – supported a recovery in gold, however, sentiment remained negative amid expectations of an aggressive Fed rate-hike cycle would still spur demand for the dollar.
Gold was down by 0.31%, and it has completed 61.8% retracement near 1270.67 and below this. We can expect a selling opportunity, whereas, the support prevails near 1264 and 1261.
Key Trading Level: 1270.03
S&P500 – SPX – Dialy Outlook
The S&P500 is trading bearish at 2,748.50, down 22.50 points and -0.78% for the day. That’s mostly because of risk-off sentiment. Investors are feeling uncertain regarding the U.S.- China trade war issues and thereby moving their investments towards safer assets such as Japanese yen, Swiss franc, and Gold.
Technically, SPX has already completed a 50% retracement at $2,745 on the 2-hour chart. The U.S. is likely to gain support on this level, whereas, the bearish breakout can lead it towards $2,735.
Key Trading Level: 2768.7