Gold: Bulls struggle near 14-week high amid lack of fresh clues
- Risk-off remains in play with the greenback weakness.
- Lack of fresh catalysts confines major moves with RSI being overbought.
Despite trade war-led economic pessimism and soft USD favoring Gold’s latest rally, lack of fresh clues seem restricting the yellow metal’s immediate upside as it seesaws near $1326 during early Wednesday.
During the early Asian session, the World Bank cut its global growth forecast from 2.9% prediction of January to 2.6% citing risks from global trade wars.
The US Federal Reserve policymakers have also been disturbed due to the Trump administration drove trade tussles with China and Mexico but refrained from being dove during their latest appearances.
Risk sentiment remains choppy as investors await fresh clues from the trade spat ahead of the US-Mexico meet at the White House while meeting of the US Treasury Secretary to the Chinese PBOC Governor at the sidelines of G20 will also be watched to determine near-term trade direction.
Global risk gauge, 10-year US treasury yield, remains mostly unchanged at 2.116% by the press time.
It should also be noted that comments from the Fed’s Vice Chair Richard Clarida will be observed to reconfirm the central bank’s future rate bias.
Technical Analysis
Unless successfully breaching February 22 high around $1333, Gold prices can’t deny revisiting $1320, $1311 and $1304 consecutive rest-points as overbought RSI may play its role. If prices clear $1333 upside barrier, $1338 and 2019 top near $1347 could be on the bull’s radar.