Gold Intraday: Will Trump Trigger an Upside Breakout for Gold?

Spot gold has shown resilience over the past two trading sessions, and U.S. President will make an announcement regarding new policies on China later today...

Gold 5

Spot gold has shown resilience over the past two trading sessions, recouping most of its losses made on Tuesday, as there are growing signs of an escalation of U.S.-China political battle.

In answering a question on the phase one trade deal with China, U.S. President Donald Trump told reporters that he is "not happy with what has happened" and will make an announcement regarding new policies on China later today.

China state-run news agency, the Global Times commented that the "Hong Kong Battle" between China and the U.S. has already begun, and U.S. "sanctions are like bluffing less than half a bottle of beer".

In one of the worst case scenario, if Trump decides to terminate the phase one trade deal with China, it could be a catalyst for gold prices.

Technically, spot gold has not shown a clear upside breakout from the bearish channel drawn from May 18, as shown on the 1-hour chart. Nevertheless, a longer term rising trend line is still valid and a bullish morning star pattern has just formed on the daily-chart.

From a technical point of view, spot gold maintains a bullish bias above its nearest support at $1,705, with prices likely to test the 1st and 2nd resistance at $1,736 and $1,754. Alternatively, losing $1,705 might suggest the next support at $1,696 would be threatened.

Spot gold 1-hour chart:

Source: TradingView, Gain Capital

Spot gold daily chart:

Source: TradingView, Gain Capital

More from Gold

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.