GOLD stands tall amid renewed US-China trade drama
Gold refreshes record highs early Monday, extending the previous week’s rebound from near $3,950.
US Dollar licks its wounds amid looming US-China tariff war, as risk rebounds firmly on TACO.
Gold holds the rising channel on the daily chart, with the RSI pointing to more upside in the near term.
Gold is seeing a second consecutive day of gains early Monday, having managed to reclaim the key $4,000 level on Friday.Gold sets off a new week with a bang, recording a new all-time high in early trades, responding positively to fresh developments surrounding the US-China tariff war.
US President Trump slapped an additional 100% tariffs on all Chinese imports and introduced strict export controls on US-made critical software starting November 1.
However, buyers quickly turn cautious, fuelling a brief retreat in Gold, as they digest Trump’s TACO (Trump Always Chickens Out) button pressed on SundayRisk sentiment is on a solid recovery, courtesy of Trump’s conciliatory remarks, citing that “I think we’re going to be fine with China.”US Vice President J.D. Vance also said on Sunday that “Trump is willing to be a reasonable negotiator with China.”
Meanwhile, a positive shift in risk sentiment dents the USD safe-haven appeal, lending support to the bright metal. The Greenback bears the brunt of the protracted US government shutdown and lingering US tariffs on China, effective from November 1.
Looking ahead, it remains to be seen if Gold continues its record-setting rally, with traders closely eyeing fresh developments on the US-China trade front and speeches from US Fed officials, in the absence of high-impact US economic data releases.
The US Bureau of Labor Statistics (BLS) is set to publish the critical CPI report on Friday, October 24.
Bracing for the eighth consecutive weekly advance, Gold buyers look to resume the record-setting rally in Asian trading on Friday.
Daily technical analysis
The daily chart shows that the 14-day RSI is off the extreme overbought zone, while trending higher 78.80, as of writing.
The leading indicator suggests that buyers could extend their control, with a retest of the $4,100 level likely. A sustained break above that will call for a test of the $4,138 – the upper boundary of the month-long rising channel.
Alternatively, Gold needs acceptance below the lower boundary of the rising channel at $3,991 on a daily candlestick closing basis to sustain the correction toward the $3,950 psychological mark.
Deeper correction could challenge the $3,895 supply zone (October 1 and 2 highs).
GOLD stands tall amid renewed US-China trade drama
Gold is seeing a second consecutive day of gains early Monday, having managed to reclaim the key $4,000 level on Friday.Gold sets off a new week with a bang, recording a new all-time high in early trades, responding positively to fresh developments surrounding the US-China tariff war.
US President Trump slapped an additional 100% tariffs on all Chinese imports and introduced strict export controls on US-made critical software starting November 1.
However, buyers quickly turn cautious, fuelling a brief retreat in Gold, as they digest Trump’s TACO (Trump Always Chickens Out) button pressed on SundayRisk sentiment is on a solid recovery, courtesy of Trump’s conciliatory remarks, citing that “I think we’re going to be fine with China.”US Vice President J.D. Vance also said on Sunday that “Trump is willing to be a reasonable negotiator with China.”
Meanwhile, a positive shift in risk sentiment dents the USD safe-haven appeal, lending support to the bright metal. The Greenback bears the brunt of the protracted US government shutdown and lingering US tariffs on China, effective from November 1.
Looking ahead, it remains to be seen if Gold continues its record-setting rally, with traders closely eyeing fresh developments on the US-China trade front and speeches from US Fed officials, in the absence of high-impact US economic data releases.
The US Bureau of Labor Statistics (BLS) is set to publish the critical CPI report on Friday, October 24.
Bracing for the eighth consecutive weekly advance, Gold buyers look to resume the record-setting rally in Asian trading on Friday.
Daily technical analysis
The daily chart shows that the 14-day RSI is off the extreme overbought zone, while trending higher 78.80, as of writing.
The leading indicator suggests that buyers could extend their control, with a retest of the $4,100 level likely. A sustained break above that will call for a test of the $4,138 – the upper boundary of the month-long rising channel.
Alternatively, Gold needs acceptance below the lower boundary of the rising channel at $3,991 on a daily candlestick closing basis to sustain the correction toward the $3,950 psychological mark.
Deeper correction could challenge the $3,895 supply zone (October 1 and 2 highs).
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