Gold keeps cheering broad USD weakness while heading into the end of 2019
- Gold remains positive around two months high.
- Prices have recently benefited from the US dollar declines, increasing odds of the US-China trade deal and the US-Middle East tension.
- China’s official PMIs can act as immediate catalysts ahead of the US data.
Gold takes the bids to $1,515 amid the initial Asian session on the last day of 2019. While overall declines of the greenback please the buyers, optimism surrounding the major consumer and geopolitical tension adds strength into the safe-haven.
The USD keeps the losses running while declining to the lowest since July 03. The traders’ fraternity seems to adjust the year-end open positions while downbeat prints of the US Dallas Fed Manufacturing Business Index offered additional weakness to the US currency.
Elsewhere, the US-China trade deal is near to its signing in ceremony, as per the South China Morning Post (SCMP) news. The same boosted the market’s risk appetite the previous day while increasing optimism for the major gold consumer, i.e. China. Earlier, the bullion traders buoyed Beijing’s readiness to abide by the phase-one deal terms.
Also contributing to the yellow metal’s upside is the US political tussle with the Middle East as well as North Korea. Iran has openly warned the Trump administration to stay ready to bear the consequences after the US attacked Iraqi and Syrian spots over the weekend. China also registered its disagreement with the US strikes. Further, North Korea prepares for something that is unknown to the world amid the fears of further progress in the hermit kingdom’s building up of its armament.
Markets are gearing up for China’s December month NBS Manufacturing and Non-Manufacturing PMI data. The official activity numbers are likely to retrace a bit after providing a positive surprise during the latest readings. Following the same, the US second-tier housing and consumer sentiment data will be in the spotlight before the investors head to the New Year holiday.
Technical Analysis
A daily closing beyond October month high near $1,520 becomes necessary for the Bulls to hold the reins, failure to do so can recall $1,500 and Wednesday’s low near $1,495 on the chart.