Gold Prices Trades in a Narrow Range $1470—$1480

The price of gold trades in a narrow range even though US Treasury Secretary Steven Mnuchin sees the Phase One trade deal being signed in January, and the precious metal may continue to consolidate over the coming days as market participation is likely to abate ahead of the holiday period.

Looking ahead, the shift in US trade policy may continue to impact financial markets in 2020 as the Trump administration remains reluctant to rollback tariffs, and it seems as though the US will renegotiate the current arrangement with Europe as the Office of the United States Trade Representative (USTR)initiates “a process to assess increasing the tariff rates and subjecting additional EU products to the tariffs.”

The threat of a US-EU trade war may push the Federal Reserve to alter the forward guidance, and the central bank could be forced to reestablish its rate easing cycle as St. Louis Fed President James Bullard, a 2019 voting member on the Federal Open Market Committee (FOMC), warns that the board will “have to consider additional insurance in the meetings ahead” amid the weakening outlook for global growth.

GOLD PRICE TALKING POINTS

The price of gold continues to track sideways amid the lack of detail surrounding the US-China trade deal, but the Relative Strength Index (RSI) foreshadows a potential change in market behavior as the oscillator breaks out of the bearish formation from earlier this year.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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