MTS Help Center

Spot gold rose 0.3 percent to $1,331.43 per ounce at 0348 GMT. U.S. gold futures were up 0.1 percent at $1,333.50.

·       The offshore yuan strengthened 0.2 percent to 6.685 yuan against the dollar, after hitting its highest level since mid-July, on the news that Trump will not raise tariffs on $200 billion of Chinese imports to 25 percent from 10 percent.

·       Trump said on Sunday that he would delay an increase in tariffs on Chinese goods that had been scheduled for later this week, citing "substantial progress" in U.S.-China trade talks over the weekend, and that he and his Chinese counterpart would meet to seal a deal if progress continued.

·       "The dollar is weaker today after Trump's extension of tariff deadline," said Jeffrey Halley, senior market analyst, OANDA.

"Gold, as it moves into the European and New York trading session, might come under pressure from the stock market," Halley said, adding that there won't be any sustained downward pressure until there is more information on the trade deal.

·       Asian shares scaled a 5-month peak after Trump's decision to extend the deadline improved appetite for riskier assets.

Gains in equity markets tend to decrease appeal for gold, considered a safe store of value during economic and political uncertainty.

·       "Gold prices, though hinting for a looming bearish correction on risk-on market sentiments, will remain firmly supported on rising economic uncertainties and heightened geopolitical risks in 2019," Benjamin Lu, an analyst with Singapore-based Phillip Futures said in a note.

·       Gold Prices May Be Readying to Reverse 6-Month Dominant Uptrend

Last week, I noted that fading upside momentum was clouding gold’s dominant uptrend stretching back to August 2018. Despite this, bulls pushed it above key resistance at 1321.37. The commodity couldn’t get far after the breach though, ending the week by trimming most of its upside progress. With a persistent negative RSI divergence, there are growing indications that a turn lower could be in the cards soon.

On the daily chart below, the threat of a turn is emphasized by an evening star candlestick pattern at gold’s recent high. This is typically a bearish reversal formation. If prices turn lower in the week ahead, they will be facing a rising support line dating back to November followed by 1302.97 which is the March 1 low. If we get a turn higher at that area back to 1321.37, the commodity may even form a head and shoulders bearish reversal pattern. The neckline of the formation would be at 1302.97.