Gold has posted considerable gains in the Tuesday session. In North American trade, the spot price for one ounce of gold is $1237.39 up 0.54% on the day. Earlier on Tuesday, gold prices climbed to $1241.99, its highest level since October 26. It’s quiet on the release front, with no key indicators in the U.S.
Investors can’t seem to make up their minds over the Trump-Xi meeting, but it’s been all good for gold, which has jumped 1.3% this week. The markets were pleased with the results of the weekend meeting between President Trump and Chinese President Xi Jinping at the G-20 summit. Trump had threatened to raise tariffs on all Chinese products from 10 percent to 25 percent on December 1, but the Xi convinced Trump to hold off on the tariffs until March 1, to give more time for the countries to reach a deal. News of the truce between the world’s two largest economies raised risk appetite and equity markets showed sharp gains. However, the optimism proved to be short-lived, as investors are concerned that the 90-day reprieve may not lead to a long-term agreement over tariffs. Safe-haven assets are in demand on Tuesday, and gold has responded with strong gains.
The ‘tariff truce’ between the U.S and China is welcome news after months of an escalating trade war, but the two super-economies remain far apart on a number of issues, including U.S. accusations that China has been stealing U.S. intellectual property. All indications are that reaching a deal will be difficult. The markets have been sensitive to development in the tariff tussle between the countries, and the likely ups-and-downs in the upcoming negotiations will likely affect the movement of gold prices in the coming weeks.
Tuesday (December 4)
- 10:00 US FOMC Member Williams Speaks
- Tentative – IBD/TIPP Economic Optimism. Estimate 57.3. Actual 52.6
*All release times are EST
*Key events are in bold
XAU/USD for Tuesday, December 4, 2018
XAU/USD December 4 at 12:25 EST
Open: 1230.69 High: 1241.99 Low: 1230.59 Close: 1237.39
XAU/USD posted considerable gains in the Asian session and posted slight gains in the European session. The pair continues to climb in North American trade
- 1236 has switched to a support role following gains by XAU/USD on Tuesday
- 1261 is the next resistance line
- Current range: 1236 to 1261
Further levels in both directions:
- Below: 1236, 1220, 1204 and 1170
- Above: 1261, 1284 and 1306
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