Gold Price Prediction – Gold Rebounds on Cancellation of US/Chinese Trade TalksGold Prices Rebound as US Yields Slip
Gold prices rebounded on Tuesday, as US yields moved lower and the dollar eases against most major currencies. New that US trade representatives called off a trade meeting, as differences where too wide at this current juncture. Stock prices moved lower, which buoyed treasury prices and lowered yields paving the way for higher gold prices. Without a trade agreement President Trump said he would increase tariffs to 25% from the current levels of 10%.
Gold prices rebounded slightly on Tuesday, after closing below support which is now seen as resistance near the 20-day moving average at 1,284. Additional support on the yellow metal is seen near the 50-day moving average at 1,252. Momentum is negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to accelerating negative momentum and lower prices. The fast stochastic continues to move lower which also reflects accelerating negative momentum. The current reading on the fast stochastic is 24, above the oversold trigger level of 20 and in the lower end of the neutral range.
US Officials Call of Trade Meeting
Officials from the United States Trade Representative’s office were set to meet with two Chinese vice ministers this week to try to resolve trade differences before the March 1 deadline, but the meeting was called off, according to CNBC. Should Beijing and Washington fail to agree on a permanent solution, President Donald Trump has said he will reinforce punitive tariffs on roughly half of all Chinese exports to the U.S. The issue with trade has reduced Chinese GDP to 6.4% year over year which is the lowest in more than a decade. Trade issues are also weighing on the United States which is taking some of the wind out of the US stock market. Traders where hoping for news of a trade agreement with China to lift stock prices back up to the all-time highs.