Gold nears $1475 as bulls keep benefiting from risk aversion
- Gold extends north-run amid market’s run towards risk-safety.
- US-China trade tussles turn bitter whereas North Korea keeps testing missiles.
Be it a spoiling case of the US-China trade tussle or North Korea’s repeated missile test, not to forget tensions concerning the Middle East and global central bankers’ monetary policy easing, Gold has it all to remain strong around multi-year high. The yellow metal is currently trading near $1472.60 before rising to $1474.95, fresh tops since May 2013, during early Tuesday.
The US recently added fuel to already boiling spat with China by terming it as currency manipulator after the dragon nation let its currency plunge to record low against the US Dollar (USD). The trade tussle between the world’s top two economies has lately been bitter after the US President Donald Trump levied fresh tariffs on China and the later retaliated.
On the other hand, North Korea has been on a run to test short-range missiles as it undertook the fourth round in nearly two week’s time. The same has been termed as a grave threat by Japan whereas the US official says that the President Donald Trump is closely monitoring the situation. Also, Iran, Saudi Arabia and Turkey are at loggerheads with the US and keep inflation geopolitical risk.
Elsewhere, global central banks are on the routes to easy money and are also supporting the safe-haven off-late.
With this, the US 10-year treasury yields dropped do a multi-month low of 1.0685% by the press time.
Given the latest move by the US Treasury Department, traders will wait for China’s response before taking fresh buying. However, on-going political tension at the rest of the world can keep prices supported.
Technical Analysis
While May 2013 high near $1,488 and $1,500 round-figure are likely immediate resistances on the bulls’ radar, sellers can look for $1,435 rest-point on the break below $1,453.