Gold Extends Decline and Tests the 1.400 Level Amid China-US Trade Truce Talks

Gold is trading down as investors are digesting news from China that the Asian country would be in talks with the US to avoid the next run of tariff sanctions.

So, the market sentiment has improved and investors are willing to bet on risky assets. Also, the dollar is posting gains following a moderation on the Federal Reserve rate cut speculations, sending the gold down.

Gold down to 1,400

Gold is trading down for the second day in a row as investors are digesting the news that the United States and China are in talks to avoid the next round of tariff measures. XAU/USD is extending its rejection from the 1,440 touched Tuesday, and it is now testing the 1.400 area.

Technical indicators are signaling more declines in the short term as investors are adjusting their bet on gold now that the Federal Reserve hinted that the rate cut would be “only” 25 basis points, and no 50 points as some experts speculated in the previous days.

Fundamental factors are also aligned to the south as somehow good geopolitical news about the conflict between Iran and the US, and Beijing and Washington are helping the market sentiment.

To the downside, XAU/USD is now heading to test the 1,390.00 support. Below there, the unit will have freeway to the 1,360.00 and 1,345 levels.

Metals report for June 27, 2018

Silver is trading down for the third day in a row as the metal is extending losses from the 15.50 area. It is now testing the 15.20 level, Wednesday’s lows.

Currently, silver is trading 0.40% negative on the day as it is pricing at 15.20, near to intra-day lows.

Copper is testing the 2.7000 area for the second day as XCU/USD is trading 0.28% down on Thursday. The unit seems to be contained by the 50-day moving average at 2.7350. Below the 2.7000 level, copper will face support at 2.6770 and the 2.6000 area.

Palladium is trading in consolidation mode between 1,520 and 1,550 as the unit is today posting gains following two days of small declines. Currently, XPD/USD is moving 0.70% positive at 1,532.

Platinum is moving sideways o Thursday as the 820.00 area contains the metal for the third straight day. XPT/USD is now 0.20% down on the day at 814.00.