- Gold suffers from trade optimism
- Upward movements in US yields limit the price
Gold is expanding its consolidation with Monday’s early European session, so the price remains in a narrow range near the $ 1475 mark.
A combination of diverging forces means that there is no directional movement in either direction while trading is near the major 100-day SMA.
The preliminary trade agreement between the two largest economies in the world supports risk sentiment in the financial markets and this affects the demand for the safe haven of gold.
The so-called US-China Phase 1 trade agreement was announced last week and in this context the US decided to suspend the increase in tariffs on Chinese imports, which should come into force on December 15th. China, in turn, pledged to increase its purchases of US agricultural goods.
The better risk sentiment shows the rise in US bond yields, which limits the bullish trials of the yellow metal.
No important economic data awaits us on Monday and so the price development will depend on the dynamics of the USD and the general market mood.