Gold Prices Slide to Two-Week Lows as the US and China Reach a “Consensus”
Gold prices declined in at the start of this week’s trading. XAUUSD steadily traded lower to $1,454.90 after opening at $1,460.46 as risk appetite lingered in the markets.
There were no new updates on the US-China trade negotiations yesterday. This means that investor optimism were anchored on reports released over the weekend. First was a key US official saying that it’s possible to have a phase one deal inked by 2019. Second was China’s statement that it would impose tough penalties on intellectual property violations.
Today, early into the Asian session, the price of gold in US dollars slid to two-week lows at $1,451.36. This follows after news from the Chinese Commerce Ministry saying that the two countries have reached a consensus in resolving issues.
If this news continues to stroke risk appetite or if data from the US beat forecasts, we could see XAUUSD test support at its November lows at $1,449.80. A break of this level will set $1,410.05 as the next major support level where gold prices previously consolidated on July 2019.
An upside rally on XAUUSD is limited to near-term resistance at $1,455.55 where it bottomed on November 18. This price also coincides with the 23.6% Fib level drawing the Fibonacci retracement tool from the high of November 22 to today’s Asian session low. The next resistance level to watch out for will be $1,464.87 which is the 61.8% Fib and is the low for November 19.Download our latest quarterly market outlookfor our longer-term trade ideas.
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