Talks between the US and China on trade and technology will remain open this week. For now, the first phase trade deal remains unknown. Despite positive comments from US officials, the US and China do not appear to be in a position to reach major agreement on the deal.
Traders continue to monitor the development of trade between the US and China. China’s Deputy Prime Minister, Liu He, had a telephone conversation with Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer about the “phase 1” of the trade deal. The two sides held “constructive discussions” on “mutual issues” and agreed to stay in close contact.
The longer it is lacking in US-China trade agreement development, the better for gold. Technically, profits over the last two days may just be a bearish flag, leading to a continued fall in prices. Now the focus is $ 1450 support. If prices stay above this level, the Bulls can find enough confidence to push prices back to $ 1,492; if that level of support fails, then we may see a drop to $ 1,425 in the near future.
Another cautious risk-on session is emerging. The silence from Washington and Beijing will help investors timidly push the indexes to new records. It is interesting to note that gold and silver are key support levels, showing positive values in today’s trade. This is a good indicator of the divergence of market views and the delicate balance between risk-on and risk-off sentiment.
Trader Aleksandar Kumanov