US-China trade talks starting on Tuesday and NAFTA are among the main drivers for gold this week. Meanwhile, Analysts at GKFX shared their 14 May Gold Price Trading Analysis. What can the market expect next?
14 May, GKFX – Gold is trading at around $1,320 a troy ounce in data-light Monday’s trading. In Asia, the yellow metal moved higher from 1,317 to 1,322 then pulled back in most of the first part of the European session. At the start of the American session, traders found an intraday floor at the 1,317 level and are trying to push gold above the 1,320 level.
US bond yields prompts some weakness
The latest leg of steady decline since the early European session could be attributed to a sudden pickup in the US Treasury bond yields, which tends to drive flows away from the non-yielding yellow metal.
The downside, however, remained cushioned amid the prevalent negative trading sentiment around European equity markets. Moreover, the ongoing US Dollar profit taking slide, which started last week, might further contribute towards limiting any deeper slide for dollar-denominated commodities – like gold.
Currently trading around the $1320 region, the precious metal now seems more likely to enter a consolidation phase amid absent fundamental drivers in terms of any major market moving economic releases from the US.
NAFTA among the main drivers for gold this week
The main geopolitical drivers for gold this week are likely going to be the US-China trade talks which are set to start on Tuesday and NAFTA (North American Free Trade Agreement). House Speaker Paul Ryan has set a NAFTA deadline for May 17.
Additionally, the recent US withdrawal from the Iran nuclear deal is another geopolitical risk as the US is now at odds with Europe, China, and Russia. The recent decision can also increase tensions in the Middle-East. Meanwhile, the US Dollar Index, which is generally inversely correlated to gold is trading lower as market participants are taking profits on the multi-week long USD trade.
14 May Gold Price Trading Analysis
The medium-term trend is flat confined between the 1,300 and 1,366 range. Resistance is seen at the 1,326, 1,330 and 1,340 supply levels and while resistances are seen at 1,310 and 1,300 demand levels. Gold is trading above its 200-period simple moving average (SMA) on the 4-hour time-frame but below the 50 and 100-period SMA suggesting a mild upward bias.
This article 14 May Gold Price Trading Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.