Gold is testing a key mark of $1300/oz, consolidating in the $1295-1300 zone since the beginning of the week. This was preceded by a pulse breaking through the downtrend line, in which the asset has been traded since 20th of the February. The breakthrough happened against the strengthening of the US dollar - DXY index rose by 0.4%. However, the same fact prevents bulls from overcoming $1300. Nevertheless, it is already possible to speak of trend change (to an uptrend) in the medium-term. Especially in the background of growing geopolitical uncertainty, which always moves harbor assets upward. Long positions can be considered from the current quotations with SL at $1290.
Market players’ attention is again focused on the development of a trade war between the United States and China. US representatives on Monday published a list of Chinese goods worth approximately $300 billion, for which it is planned to raise duties up to 25%. Beijing responded that it would impose duties for $60 billion in US imports. The degree of tension dropped slightly after Donald Trump said he expects a fruitful meeting with Xi Jinping at the upcoming G20 summit.
However, the president did not stop at this and tweeted that the next step for China, in his opinion, would be a reduction of the interest rate. He urged the Federal Reserve to do likewise in order to help the United States win the trade war. How convenient, if we recall that he had tried to convince the Central Bank to do this not so long ago.