© Reuters. Gold morning look: high despite all the opposition factors, where is it going, and will it continue?
Alex wrote it
Investing.com – Asia raised prices on Monday amid doubts over the success of the China-US trade agreement.
Gold prices traded 0.1% higher, at $ 1,561.45 an ounce, at 9:54 Mecca time.
China agreed to buy $ 200 billion worth of Chinese goods over the next two years last week, but gold recovered from losses as traders began doubting the feasibility of the trade agreement to prevent future tariffs that the two sides could impose each other.
In other news, a report from the US Department of Commerce stated that starting house prices and retail sales rose last Friday, reducing the possibility of the Federal Reserve cutting the interest rate.
Over the past year, the Fed has cut its interest rate 3 times, and stopped cutting it last December, with upbeat US data, and analysts currently do not expect the Fed to enter a new round of tariffs unless the trade war is on fire.
Here’s an important look at another Fed policy of facilitation, which he simultaneously denies:
TD Securities said in a note: “After the strong pressure on the positions, the prices of the precious metal returned to crawl back up.” “This is accompanied by positive growth prospects heralded by higher inflation without Fed intervention to cut interest rates.”
If gold breaches 1,562 up, we will see it heading towards $ 1,573 an ounce, while a break down may lead it to the September high at $ 1,535.43, and we may see $ 1,520.
And gold purchases increased in the market because of the celebrations of the lunar new year in China and Singapore, while India is struggling with the decline in demand due to high prices, which pushes retailers to reduce prices, according to a Reuters report.
According to Reuters technical analyst, it may test in immediate transactions resistance at $ 1,564 an ounce.
And palladium, after its record last Friday, settled at $ 2,479.73 an ounce.
It rises on the back of fears of diminishing supply due to threats to supplies.
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