TREND IN GOLD PRICES CHANGING
Prior to the first phase agreement to be signed between the US and China, the risk appetite maintained in the markets led to a withdrawal of up to 1535 in Gold prices. Despite the weak non-farm employment report released in the US, dollar assets remain strong. Especially the decline in hourly wages weakened US inflation expectations. However, despite the positive atmosphere in the markets, it can be said that the indices are in some profit realization. US futures are flat this morning, with weakness in Asian markets. Prior to the deal to be held on January 15, the US announced that it had removed China's label, which it declared as a "currency manipulator" in August, while a sharp appreciation of the Yuan currency occurred.
The earnings season, which started in the USA as of today, will begin under the leadership of important bank balance sheets. Therefore, the activity in the US markets may gain some momentum. On the first trading day of the week, the US side was quite calm in terms of data flow. However, the negative trend of the data announced in the UK, the Sterling side by suppressing the Dollar has made the advantage of the index. With the approval of the Brexit bill, the contraction in industrial and manufacturing production in the UK markets, which had been settled for a while, drew a negative picture of the economy. Moreover, the UK economy unexpectedly contracted. The inflation figure to be announced in the US today may lead to volatility on the dollar side.
With the recovery in the dollar side, US 10-year bond rates remained at 1.86 percent and Gold prices continue to maintain their downward momentum. Especially in case of sagging below the level of 1535 in the precious metal, it can be expected that the withdrawals will continue to increase with the support of 1525. Otherwise, if the 1535 level is supported by closures above 1550 resistance, it is possible to accelerate the upward movements. Maintaining the outlook above 1535 can be used as a basis for the limited decline in gold.