Gold Stages Stealthy Recovery Amidst Growing US-China and Australia-China Tensions

Gold Stages Stealthy Recovery Amidst Growing US-China and Australia-China Tensions

Gold (XAU/USD) is showing strong rebound strength from today’s low of $1,692 and is attempting to scale the $1,710 resistance hurdle while investors are scurrying for safety as the growing Australia and China tensions take center focus. At press time, Spot Gold is trading at $1,708, up 0.6% in the European trading session.

Gold has managed to stage a decent recovery despite the increased safe-haven demand for the USD amid rising US-China and Australia-China tensions.

Meanwhile, a new development in France that the Finance Ministry has announced a state of emergency for the Aerospace industry has ruffled investors causing European equities to drop which, consequently, has allowed the yellow stage a steady rebound.

However, hopes for further recovery for gold in the near term look very dim as the USD is likely to extend its safe-haven appeal considering that there are expectations of an optimistic economic outlook likely to be announced by the Fed on Wednesday. Consequently, the global equities risk sentiment and USD price action will remain major determinants for further gold recovery in the near term.

XAUUSD – Daily Chart

Gold (XAU) Value Forecast — June 9

XAU/USD Major Bias: Bullish

Supply Levels: $1,710, $1,717, and $1,722

Demand Levels: $1,690, $1,677, and $1,670

Gold remains in a slow but steady climb back into our ascending channel and subsequently to its previous top ($1,744). However, the path of least resistance (both technically and fundamentally) remains at the downside making a clean recovery from this point very difficult.

Meanwhile, a clean break and close above the $1,715 (200 MA) could give gold more fuel to push further to the upside.

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