12 Dec 2019
Gold Price Analysis: XAU/USD drops hard as Trump gets upbeat on trade deal
- Gold drops sharply as President Trump sees a trade deal sooner rather than later.
- XAU/USD is likely trapped in range in the 1480-1455 zone in the medium term.
Gold daily chart
Gold rejected one-month high while near the 100-day SMA as President Trump tweeted: “Getting VERY close to a BIG DEAL with China. They want it, and so do we!”. The comment triggered a risk-on market with equities jumping and the Japanese yen selling off.
Gold four-hour chart
XAU/USD sharply rejected the 1485/80 resistance zone. The price is now hovering just above the 1465 support level near the 50 SMA on the four-hour chart. At this stage, the market seems to be trapped in a range between the 1480 and 1455 levels.
Additional key levels