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Gold futures shed about 0.47% reaching a low of $1,724 just a few hours ago. The precious metal failed to hold on to its gains from last week’s session.
Stocks, which are generally expected to move in the opposite direction of gold, were trapped in a bout of uncertainty with Chinese stocks suffering serious losses at the open of the session.
According to reports, investors’ risk sentiment declined following China’s decision to formally table national security laws for Hong Kong and Macau as the National People’s Congress opened on Friday. This announcement caused citizens of Hong Kong to take to the streets in protest on Sunday. The protesters were met with heavy resistance from the police who fired water cannons to disperse them.
The tension between the world powers escalated after Chinese Foreign Minister, Wang Yi, said on Sunday night that the US was nearing a ”new Cold War” with China following President Trump’s threat of ‘strong action’ should the proposed law be enacted. This threat was followed by the US Commerce Department blacklisting 33 Chinese entities on Friday.
Gold (XAU) Value Forecast — May 25
XAU/USD Major Bias: Bullish
Supply Levels: $1,745, $1,763, and $1,797
Demand Levels: $1,722, $1,717, and $1,700
The XAU/USD was met with a soft decline to the $1,720’s level as projected last week. Gold has resumed on its upwards move to the anticipated $1,740 level. However, gold has to stay above $1,722 to confirm its bullish momentum. A break below that level could send the price down to $1,700 – $1,695 levels rapidly. Overall such reality seems very unlikely for gold in the time being.
Source: https://learn2.trade
