On Tuesday, the safe-haven metal price was little changed due to intensifying trade war among Sino-US. Throughout the day, there’s been a tug of war between bulls and the bears, who are still unable to decide whether to go long or short on gold in the absence of economic events.
Gold prices were little changed following touching new 6-year highs in the earlier session due to intensifying trade tensions between the United States and China. Gold was little changed at $1,475.90.
U.S. -China Trade War – Safe Haven Boosts
The safe-haven gold attracted safe-haven demand and moved as high at $1,481.75 yesterday after the newest trade headlines, its strongest level since September 2013.
The main driver behind this week’s move has been the escalating trade tensions between the U.S. and China. Following U.S. President Donald Trump announced 10% tariffs on the lingering $300 billion of Chinese imports, China let the yuan to dilute and grow above 7 against the U.S. dollar for the first time in more than a decade.
Gold – XAU/USD – Technical Outlook
Yellow metal gold bulls are in control following last week’s bullish price action on the trade war escalations between the US and China. Taking a look at the 4-hour timeframe, gold has violated the bullish channel which was extending resistance at 1,460. While the support prevailed at 1,400 level.
Since the bullish channel has been violated over the safe-haven appeal, gold has higher odds to continue upward until 1,480. Whereas, the old bullish channel resistance of 1,460 is likely to work as support now.
Key Trading Level: 1461.53
Gold – XAU/USD – Trade Tips
Overall, the market may exhibit thing trading volume but we can consider staying bullish above 1461.53 to target 1472.15 and 1480.51.