Spot gold bulls look at each other as the market slowly digests the China Deal

January 17, 2020 - 1 month ago
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From endless Tweets, rounds of renegotiations and escalating tariffs, the 18-month trade saga between the world’s two largest economies finally signed the so-called “Phase-One” trade deal on Wednesday.

Meanwhile, the U.S. Senate approved a new trade deal between the U.S., Mexico and Canada on Thursday, a key victory for President Donald Trump as the Senate officially opened a historic impeachment trial against him.

Overnight, the precious yellow metal swung in and out of losses and gains and eventually ended on a mixed sentiment after displaying an intraday range of $1,45 to $1,558.

With the conclusion of the so-called “Phase-One” agreement signed by President Donald Trump and Chinese Vice Premier Liu He, safe-haven demand has now taken a backstep and technically remains vulnerable to a potential downturn if the market bears break/close beneath the support at $1,538.

Although the outlook is presently neutral, sub $1,538 exposes the (expected) demand area at $1,522-26, which is expected to draw a bullish response.

Conversely, it is assessed that a bullish correction would be confirmed if prices break above $1,565 (which would reinstate the $1,600-15 target).

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