Gold prices moved lower on Thursday sliding slightly more than 0.75%, as the US-China trade talks kicked off on a positive note. Stronger than expected US jobless claims also weighed on the yellow metal as the dollar was buoyed US yields moved higher. Gold prices have been rangebound and finished Thursday’s session on the lows.
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Gold prices moved lower on Thursday driven down as sentiment toward riskier assets improved. This occurs when the open and the close are at the same level, reflecting indecision. Prices edged through short term support, which is now resistance near the 10-day moving average at 1,495. Additional support is seen near an upward sloping trend line that comes in near 1,468. Resistance is seen near a downward sloping trend line that comes in near 1,517. Short term momentum has whipsawed and now points to consolidation. Medium-term momentum is beginning to consolidate. The MACD histogram is printing near the zero-index line with a flat trajectory which points to consolidation, but also a potential crossover buy signal is about to occur. Prices continue to trade sideways as momentum has nearly stalled.
Trump to Meet with Chinese Negotiators
The White House announced on Thursday that President Trump said he would meet with a top envoy of Chinese President Xi Jinping and the two sides worked toward an accord aimed at preventing currency manipulation. The scheduled meeting is expected to be on Friday. Mr. Trump said he would meet with Chinese Vice Premier Liu He at the White House. While it is unlikely that the two sides will reach an agreement on Friday, the news of the meeting help buoy riskier asset and weigh on gold prices. Prior to the talks the White House also green lighted the approval of licenses for American firms to do business with blacklisted Chinese telecom giant Huawei Technologies.
This article was originally posted on FX Empire
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