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Gold prices
Gold prices

Gold Prices Jump Higher on Trade Tensions

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Nikolas Papas Forex Analyst
    Summary:
  • Gold prices run higher today as the risk returns to markets after U.S. President Donald Trump announced the return of tariffs on steel imports

Gold prices run higher today as the risk returns to markets after U.S. President Donald Trump announced the return of tariffs on steel imports from Brazil and Argentina while threatens to impose tariffs on France products as retaliation to the tax imposed by the French government on U.S. technology companies.

President Trump in a comment earlier in London said that the U.S. – China trade deal might come after the U.S. election on November 2020 sending traders to safe-haven assets such as Yen and gold

Gold traders expect that Fed to keep rates unchanged in its policy meeting in December.

Gold Prices Support and Resistance

The gold prices turned sharply higher after President’s Trump comments and broke above the 20-day moving average resistance. The gold price today also managed to break above the November trading range ($1,450 – $1,465) and makes fresh weekly highs.

Now the buyers are in control of the short term trend while a break above the 1470.82 daily top will enhance the positive outlook. A break above that resistance level will open the way for the next target at $1,485 the 100-day moving average.

On the downside, immediate intraday support stands at $1,464 the 20-day moving average and then at $1,459.76 today’s low.  A break below that support level might attract more sellers targeting the low from November 12th at 1,445.