Gold price reverses an early dip to $1530


Gold price reversed an early dip to $1530 area and has now climbed to the top end of its daily trading range.
 
28 August 2019, GKFX – Despite fading optimism over a quick resolution of the prolonged US-China trade dispute, a slight improvement in the global risk sentiment – as depicted by stability in equity markets – weighed on the precious metal’s safe-haven appeal.

Gold price fundamental highlights

This coupled with a modest US Dollar uptick exerted some downward pressure on the dollar-denominated commodity and collaborated to the early downtick, albeit concerns about global economic growth helped limit further losses.
 
The ongoing fall in the longer-term US Treasury bond yields deepened the inversion of the US yield curve to the lowest level since 2007 and continued fueling worries about a recession and underpinned the non-yielding yellow metal.
 
However, the fact that the US President Donald Trump softened his tone against China and predicted that the two countries will be able to reach a trade deal might keep a lid on any strong up-move, at least for the time being.
 
Hence, it will be prudent to wait for a follow-through buying before traders start positioning for the resumption of the prior bullish trajectory amid absent relevant market-moving US economic releases on Wednesday.

Disclaimer

This article was provided 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.

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