Gold Down On US-China Hopes, Platinum Approaches To Key SupportPlatinum on risk, gold and silver down. market in low volume, US Dollar index on the defensive too. Good news from US-China trade talks fueling optimism.
Gold is trading down in the first day of the week as investors are entering the market slowly and low volume is on minimums on Easter week.
Almost all precious metals are posting losses on Monday as US Treasury Secretary Steven Mnuchin said trade talks between the United States and China are approaching to a final stage. Dollar is also down.
Investors are waiting for the GDP data in China that will be published Wednesday. Also employment report in Australia and manufacturing data in Europe on Thursday.
Dollar index down to flat on Monday
The Greenback is trading down for the second trading session as investors are willing to bet on riskier assets. DXY is now at 96.80, 0.03% negative on the day. The 96.75 level is supporting the unit as the pair reached it on Friday.
With a not-strong Dollar, gold should be up, but it is not happening as the metal doesn’t have enough appeal.
Gold extends losses beyond 1,300
Gold is trading negative for the third trading day in a row. The metal is suffering good news that spur risk sentiment across the market. Also, technical conditions in the unit have deteriorated.
“Gold has clearly lost the upward trajectory that it was on, trying to find new supportive catalysts,” Capital Economics analyst Ross Strachan said to CNBC. We’ve seen continued positive murmuring on the trade negotiations in recent days. That’s obviously a headwind for safe-haven gold.”
Also, gold performance throughout last week showed us that traders became increasingly sensitive to the economic calendar and stock market movements. “Today is likely to be no different,” FX Empire analyst James Hyerczyk highlighted in a recent article.
“Gold prices could continue to weaken if macro-economic data and risk-taking sentiment continue to improve.”
Currently, XAU/USD is trading at 1,287, 0.19% negative in the day. The unit is approaching the 1,280 critical area where the pair was contained in March and April.
Below there, next support will be the 200-day moving average at 1,250. Then, the 1,230 will be exposed.
Silver tests 14.90 support
Silver is trading negative on Monday amid low volume plus good news in the market. XAG/USD is extending losses below the 15.00 area, and it is now testing the critical 14.90 level.
XAG/USD is currently trading 0.35% negative on the day at 14.92. It seems the market is ready to break below the 14.90 area after unsuccessful attempts in the previous weeks.
Below there, the unit will find immediate support at 14.80, then 14.50 and 14.25 will be the levels to watch.
Platinum breaks below 885.50
XPTUSD is accelerating its losses on Monday as the unit broke below the critical support at 885.50 and stop losses activation sent the unit deeper.
Platinum is currently trading at 880,00, 1.25% down in the day. The Unit has lost 3.24% in the last three trading sessions from April 11 high of 910.00 to current levels.
The risk is now at the 877.00 level, a critical support that acted as resistance in the past. A break below there would be taken as a technical event that would open the doors for a bearish sentiment in the metal.
Below there, platinum would fall to 830.00.