Market News & Analysis


Top Story

Gold regains poise as stocks drop amid US-China trade jitters

Safe-haven gold was shining brightly again after a grim session the day before.

It was boosted in part by a struggling stock markets, as investors awaited the start of high-level trade talks between the US and China scheduled for later this week. With Donald Trump putting several more Chinese technology companies in a blacklist, investors are erring on the side of caution in case the talks collapse again without any agreement.

The precious metal found additional support from a weaker dollar, ahead of the upcoming US inflation data. The greenback fell against a number of foreign currencies including the euro, with the latter being underpinned by above-forecast German industrial production data, released this morning.

Meanwhile, benchmark government bond yields were looking weak again after Monday’s bounce. This also helped to boost the appeal of the noninterest-bearing commodity.

From a technical point of view, it is interesting to note that gold has found support from the neckline of that Head and Shoulders pattern at around $1485/90 area, below which the sellers were evidently trapped in early last week. The fact that price is holding above this area means the bulls will therefore be happy. For more technical analysis on gold, please refer to our previous article HERE. Below is an update chart of gold.


Source: Trading View and City Index.

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.