US-China, how far it goes?


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Gold analysis – 15 May 2020

By: Ahura Chalki

The most important reasons for the latest rally of Gold were two titles, US economic data and Powell’s speech, and second, US-China trade tensions.

Yesterday, we saw another wave of raising the jobless claim to near 3,000K, while the expectation was 2,500K. The total jobless number raised to 36,000K in past 8 weeks and FED chair warning about the long way to get out of this situation, which needs time and going to be painful for the US economy.

On the other hand, US-China trade tensions, moving into the new stage. Before analysts used to say that as much as we are getting closer to the US election, Mr. Trump will need the agreement with China, to take advantage of that, however, now as everything changed after COVID-19, campaign rules also can change. Mr., Trump, and his government trying to blame china for coronavirus, – either if it’s right or not, it is not the subject of this article – and for now in his campaign for re-electing, it can be an option to go more forward in this way and even though while China did not buy the US products, US will have the reason to leave the phase-one trade deal, all that made the market to worry and gold to raise as safe haven.

Gold technical overview – H1 Chart

Technical indicators clearly supporting the bulls, RSI at 63, with no sign of overbought, has enough power to lead the way, Parabolic SAR has its dots under the candles, supporting the bulls, while EMA crossing strategy also moves positively.

Pivot point: 176.70

Resistance levels: 1742.70 / 1752.25

Support levels: 1717.17 / 1701.16

Today, the expected trading range is between 1717.17 support and 1752.25 resistance.

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