DXY gained 0.2% after reaching it's lower level on May 16 and currently trading at 97.760
On Monday, U.S. President Donald Trump in a news conference with Japanese President Shinzo Abe said he was “not ready to make a deal with China”, the latest blow to beliefs that the two countries might reach a deal soon.
* Furthermore, a weak U.S. manufacturing activity data coupled with a dip in new orders for U.S.-made capital goods last week ignited worries that the trade conflict may hurt the world’s largest economy, lifting investor expectations for a U.S. rate cut.
* China’s net gold imports via main conduit Hong Kong in April rose 20.5% from the previous month to their highest levels since July 2018, Hong Kong government data showed on Monday.
The geopolitical uncertainty that includes the potential U.S.-China trade war escalation and also increased U.S.-Iran tensions are the major reason which caused the short term upwards price movement in P. Ms but really it should have uplift the yellow metal prices to at least $1300 by now
our current bias-The bears are in the full control and have the overall technical advantage in gold and silver market overall we believe the boring price movement which we have witnessed from weeks in the precious metal sector has already ended and the serious technical damage in P. Ms charts has already inflicted however the next breakdown could be more severe enough