Gold Price Prediction – Gold Rebounds Following Trade Rumors
Gold prices rebounded and the dollar lost traction as riskier assets gain ground following news that Chinese and U.S. negotiators are working on a scheme to hold talks to end the trade dispute. The dollar has been the strongest currency around the globe and the an end to the recent Sino-US trade dispute would allow other currencies including gold to gain a foothold.
Gold prices rebound following a spike down doji Day on Thursday which is a sign of a reversal pattern. Support is seen near the August lows at 1,160, while resistance is seen near the 10-day moving average at 1,196. Prices still remain oversold. The relative strength index (RSI) is printing a reading of 26, below the oversold trigger level of 30 which could foreshadow a correction. The RSI is a momentum oscillator that measures accelerating and decelerating momentum, reversed higher which is a sign of accelerating positive momentum and it could generate a buy signal as it crosses the 30 handle. Negative momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in the red, with a rising trajectory which points to consolidation.
Chinese U.S. Trade Dispute Could Come to a Close
Chinese and U.S. negotiators are reportedly working on a plan to hold talks to end a trade dispute that result in meetings between President Donald Trump and Chinese leader Xi Jinping at a summit in November. This information was reported on multiple newswires including Dow Jones and CNBC.
A nine-member delegation from Beijing, led by Vice Commerce Minister Wang Shouwen, will hold meetings with U.S. officials led by the Treasury undersecretary, David Malpass, on Aug. 22 and Aug. 23, the report said, citing officials from both countries. Riskier assets have been capped by the trade disputes. A relaxation in trade negotiations would help the markets rally.