Gold Spot Trading Zone of $1285-$1279, If Break Resistance at $1292 per ounce.
We see Gold Spot Target $1297 — 1302 (Don’t Panic @ Lower Level)
Technical Power of CFA’s
(CHARTERED FINANCE ANALYST)
“No Magic, No Miracle, Just Power of Level”
Neal Bhai Reports (NBR) By CFA’s and MFA’s Technical Team
Mobile No. 9582247600 & 9899900589
Gold June delivery GCM9, +0.09% gained $3.80, or 0.3%, to settle at $1,285.20 an ounce, recovering much of its $4.20, or 0.3%, loss from the previous session. The precious metal posted its fourth gain in 5 sessions, according to Fact-Set-data, putting it on track for a weeklyRise of about 0.3% based on last Friday’s settlement.
The U.S. is set to raise tariffs on some $200 billion in Chineseimports to 25% from 10% on Friday morning at 12:01 a.m. Eastern Time, as the Trump administrationattempts to ratchet up pressure on Beijing to strike a substantive trade agreement.
At a Wednesday rally with supporters in Florida, President Donald Trump said China “Broke the Deal.”
The Wall Street Journal reported that China has adopted hardball tactics, as it perceivessigns of weakness in the U.S.’s negotiating position. On Wednesday, the newspaper also reported that Beijing has threatened unspecified retaliation if the White Housepushes through tariff increases, even as China’s trade envoy, including Vice Premier Liu He, were to commence fresh negotiations Thursday, highlighted by a dinner between Liu and U.S. trade negotiator Robert Lighthizer.
“Seeing the president in a campaign rally indicate that China ‘broke the deal’ could have the impact of discouraging China from negotiating in the coming two days,” said analysts at Zaner. “At this point, we suggest a deal in the coming 48 hours appears to be unlikely.”
Gold has benefited somewhat against this backdrop of uncertainty, and some gold bulls say the commodity may claw higher if trade talks deteriorate further, and as the increased China import duties come into force.
“Having already breached the $1,290 level this week before moderating, bullion may surge past that level once again, in the event that negotiations in Washington break down and higher US tariffs kick in,” wrote Han Tan, market analyst at FXTM, in a Thursday research note.
However, commodity investors have expressed disappointment that the yellow metal hasn’t enjoyed a more decisive rally. – Neal Bhai Reports