Gold remains firm around multi-year high as risk-off returns

• Gold continues to stay strong at the highest since mid-2013 as Chinese headlines, Hong Kong Protests, and Syrian news help recall the risk-off.
• Speculations over Fed’s additional rate cuts added fuel to the run-up.

With Chinese media trying to add fuel in already boiling trade war, coupled with headlines from concerning Syria, risk-off seems to return to market during early Wednesday, which in-turn helps Gold to remain firm around multi-year high while taking rounds to $1,476.

China’s Global Times attacked the Trump administration of providing bubbles flooding the US stock market while also signaling that Huawei is developing its own operating system, called Hongmeng, to overcome the US making accessing Android much more difficult. Further, the Global Times also mentioned that the economy is now prepared for new tariffs from the US. Elsewhere, protests at Hong Kong keep entertaining global geopolitics watchers as China’s People’s Daily rolled out the dragon nation’s view of punishing those who challenge their “one country, two systems” motto.

Risk sentiment is also supported by the Sputnik’s headline that a damaged US F22 stealth fighter was reportedly spotted flying over Syria.

While trade/political news again turned the risk-off mode on, comments from the White House trade adviser Peter Navarro supporting three rate cuts from the Fed to 1.0% rate also played its role in escalating risk aversion moves.

Portraying the momentum, the US 10-year treasury yield again slipped beneath 1.7% by the press time.

As there prevails lack of data/events on the economic calendar, except for the monetary policy meeting by New Zealand and Indian central banks, investors can keep following trade/political news for fresh impulse.

Technical Analysis

Unless declining below July 19 high of $1,453, which holds the key to the bullion’s additional weakness towards 21-day moving average (DMA) level of $1,430, prices can keep running higher in the direction to May 2013 top around $1,488 and then to $1,500 round-figure.