Gold Consolidates gains, Silver, Copper, and Palladium Down

Gold is trading flat on Tuesday as investors are waiting for more catalysts before deciding the way they are going to take.

On the other hand, copper, silver, palladium, and platinum are trading down as risk aversion has taken the market following Trump’s tweets.

Dollar index is trading higher after the unit found support at 97.35 earlier in the day.

Investors wait for trade talks and economic calendar
After a storm comes a calm, and after US president Trump’s tweets, it enters the market to digest the situation. After a hectic Monday, Chinese officials confirmed that Vice Premier Liu He will visit Washington this week to lead his country delegation in trade talks.

Fears grew about a possible trade war after Trump’s tweet, fueling risk aversion and underpinning gold and other commodities.

However, now both delegations and officials are providing some sense of calm. So, the market is on wait and see mode, especially before the economic calendar for this week.

Also, the US decision to deploy military pieces in the Middle East due to “indications and warnings” from Iran is also fueling risk aversion.

However, gold prices are not taken the lead and even other metals are posting losses. Wait and see could be the reason.

Watch out for more trade-war related news. As well as imports and exports data in China, RBNZ and BoJ rate decisions on Wednesday.

Gold is trading flat to negative on Tuesday as investors are waiting for more information. Trade-talks between US and China and conomic data are on the radars.

XAU/USD is trading 0.13% negative on the day at 1,278 as the pair is consolidating levels after two positive trading days in a row. The pair seems contained by the 20-day moving average level.

Edward Moya, senior market analyst at Oanda, thinks that market is focusing on the trade talks developments. “Gold did not deliver a substantial gain following the Trump tariff threat and (gold) markets may see bearish momentum accelerate if we do see a positive outcome with the talks in Washington this week.”

If the pair fails to extend gains beyond 1,290, it will return to the 1,266 level in the days to come. Below there, 1,250 is the next buying zone.

Yahoo Finance

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Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya