Gold pared recent losses to $1,780 on Tuesday morning as sellers stepped up activity in Europe. However, market concerns about economic prospects in the United States, Europe and China appear to be keeping commodity buyers optimistic. Soft US and Chinese data releases and low Treasury prices reflect economic concerns, not to mention the Sino-American conflict.
The German economic crisis was along the same lines. Europe is negotiating a nuclear deal with Iran to combat domestic energy issues. The geopolitical conflict over China may be along the same lines. According to Xinhua, China has sanctioned several Taiwanese separatists. Previous visits to Taiwan by several members of the US Congress have angered Beijing, led to heavy military activity on Taiwan’s border and fueled geopolitical concerns. Gold Prices. .
It’s worth noting that German Economy Minister Robert Habeck said on Monday that “Germany’s Russia-dependent energy transition has failed and will not recover,” according to Reuters.
XAU/USD
In other news, the US NY Empire State Manufacturing Index fell to -31.3 in August from 11.1 in July and the market expectation of 8.5. Additionally, the August NAHB homebuilder confidence index in the United States fell from 55 to 49, the lowest level since the first months of 2020.
In contrast, China reported disappointing retail sales and industrial production numbers for July and a rate cut from the People’s Bank of China (PBOC). However, market jitters that China’s move is not enough to restore market sentiment appear to put further downward pressure on gold prices.
Around this time, US 10-year Treasury yields broke a two-day downtrend at around 2.78% but are slow. Additionally, S&P 500 futures are down 0.10% on the day at the time of writing.
Looking ahead, today’s German ZEW economic sentiment data will be released ahead of July’s US construction permits, housing starts and industrial production figures, providing fresh impetus.
After all, the Fed’s minutes will be crucial if the future actions of the US central bank are uncertain.
Gold (XAU/USD) Technical View
The price of gold faced significant negative pressure yesterday to test the important support level of 1779.25, seeing the price stable above it, with clear bullish signs on the stochastic side now, hoping to trigger the market to resume positive trades first to target 1802.80.
As a result, our overall bullish view remains accurate, stressing that a hold above 1779.25 is necessary to achieve our targets. Today’s trading range may be between 1770.00 support and 1800.00 resistance.
Today’s projected trend: bully