- Gold could remain a better bid in the near term on renewed trade tensions and global growth concerns.
- Technical charts favor the test of recent records above $ 1325, although the dollar strength can play spoilsport.
Gold rallied above $ 1310, after rising for two consecutive days against global growth.
The yellow metal printed a low week of $ 1302 on Thursday, before rising to $ 1,134. The jump was apparently caused by uncertainty surrounding the Sino-US trade war and fears of a slowdown in global economic growth.
Last week, the European Commission dropped a sharp fall of 2019 in the growth forecast in the eurozone, causing concerns about a recession in the Eurozone's core economies.
Moreover, trade tensions resurfaced after US President Donald Trump said he had no intention of meeting with Chinese President Xi Jinping before March 1 deadline to get a trade deal.It is worth noting that Trump vowed to raise import tariffs $ 200 billion to 25% if both sides do not reach the deal until 12:01 on March 2.
The yellow metal, then, can trade in an attack in the near future. Technically, Friday's move to $ 1314 confirmed dizzying wedge wedge expansion on a 4 hour chart. Simply put, the withdrawal from the last record of $ 1326 ended apparently and the bulls seem to have control.
However, the appreciation may be covered by a strength rate. The dollar index, which tracks the value of the US dollar against the trends, rose on Friday the seventh Friday and is now flat in a row around 96.64.