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Gold is trading negative on Tuesday as investors are digesting trade war developments, a firm dollar and they re waiting for economic releases this week.
Silver lost the 14.60 level as it broke below its range to traded under 14.50. Copper is trading negative on Tuesday after three positive sessions as the mineral was unable to break above the 2.7100 area.
Palladium is trading sideways as the unit is consolidating levels above the 20-day moving average at 1,333. Platinum stopped its recovery from 795.00 at 817.90, where the pair got a rejection. It is currently trading negative in the day at 809.00.
Finally, the Dollar index pared losses at 97.55 on Monday with the pair bouncing off to test the now resistance level at 97.85.
Trump leaves Japan with no deal
US president Donald Trump finished its trip to Japan with a no deal on its trade talks although he was tweeting about it the whole weekend.
However, as James Hyerczyk, FX Empire analyst, said in a recent article, “this was not a surprise since the trip seemed to focus more on pomp and circumstance than resolving deep issues on trade.”
With no deal between Japan and the United States, experts are skeptical about a quick resolution with China. Now they are focused on a possible meeting between Trump and China president Xi next month in the G20 summit.
This situation has hurt global sentiment with dollar as the principal beneficiary. A firm dollar hurt gold.
Gold focus on economic calendar
Prices of gold are trading sideways as investors are waiting for catalysts in form of economic events. This week, market will be focused by the Gross Domestic Product release in the United States and also in Canada.
Also inflation in Europe and Japan, consumer sentiment in the US and the interest rate decision in Canada will give traders reasons to move in any direction.
Gold performs its first negative day in four
Gold is trading negative on Tuesday as investors are digesting news from Japan, China and ahead of economic releases; however, the move is limited due to lack of direction and determination in traders. But also because the bullion is trapped in a small range between 1,280 and 1,290.
Currently, gold is trading 0.07% negative on the day at 1,284. Technical indicators are mixed in the daily chart. Also, 20 and 50 moving average levels are acting as boundaries for both sides of the channel.
According to Hyerczyk, gold is very influenced by dollar and euro, so that “if the Euro and the US Dollar remain rangebound then gold will remain rangebound.”
On the other hand, Jeffrey Halley, senior market analyst at Oanda, said in a recent note that “the price action in gold has been a little bit disappointing and pretty negative.”