Gold Prices May Find A Lifeline as US, China Trade War Escalates

GOLD CRUDE OIL TALKING POINTS:

  • Gold prices down as US Dollar, Treasury yields simulate hawkish Fed
  • Crude oil prices pressuring draft support running six-month uptrend
  • Fears of US/China trade fight escalation competence unleash risk aversion

Gold prices declined as US Treasury bond yields modernized alongside a US Dollar in expectation of a hawkish Fed financial process announcement, sapping a interest of non-interest-bearing alternatives. Crude oil prices further fell as a stronger greenback practical de-facto vigour on resources quoted in terms of a benchmark banking (as expected).

For their part, Chair Jerome Powell and association did not disappoint. While rates remained unvaried as widely predicted, a matter expelled following a assembly of a policy-setting FOMC cabinet sounded decidedly assured on enlargement and acceleration prospects. That bolstered a luck of a fourth rate travel in 2018 to 58.8 percent, adult from 56.5 percent available a week earlier.

TRADE WAR TENSIONS MAY HELP GOLD, HURT CRUDE OIL PRICES

From here, a peace in top-tier scheduled eventuality risk competence put view trends in focus. Signs of escalation in trade fight tensions between a US and China pushed shares reduce in Asia Pacific trade and futures tracking a FTSE 100 and SP 500 equity benchmarks spirit some-more of a same competence be ahead. That competence import on bond yields, charity bullion a lifeline. Crude oil competence humour alongside other unsure resources however.

Learn what other traders’ bullion buy/sell decisions contend about a cost trend!

GOLD TECHNICAL ANALYSIS

Gold prices remain sealed in a choppy operation above a 1200/oz figure. Breaking subsequent a Jul 19 low during 1211.65 exposes a 38.2% Fibonacci enlargement during 1197.94. Alternatively, a pierce above trend line insurgency during 1220.02 paves a approach for a retest of former support during 1236.66.

Gold Prices May Find A Lifeline as US, China Trade War Escalates

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices continue to float during support set from early February. A daily tighten subsequent a outdoor covering – now during 66.60 – opens a doorway for a exam of a 63.96-64.26 area. Alternatively, a miscarry above a 38.2% Fibonacci enlargement during 71.52 targets a 50% turn during 72.89 next.

Gold Prices May Find A Lifeline as US, China Trade War Escalates

COMMODITY TRADING RESOURCES

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

To hit Ilya, use a comments territory subsequent or @IlyaSpivak on Twitter

About author

Is this banking rort finally ending?

Video Image Australia’s banks will no longer pay bonuses to retail staff for product customer sales following a review. Banks have committed to ditching the ...