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Gold Trades Flat Post Rebound from $1292 Handle Ahead of G7 Summit

Colin First

Gold is trading flat as risk sentiment soars ahead of G7 summit. This caused XAUUSD pair to test $1292 price range during late American trading hours on Thursday. However softer greenback’s stance owing to Euro gaining strength helped yellow metal rebound back to $1298 price handle.  Since rebound the yellow metal has traded flat as risk sentiment has spiked with G7-summit scheduled to start within next 24 hours in Canada. G7 summit along with a week full of high impact events such as US and European central bank policy meets, US and North Korean summit risk sentiment has soared to new heights and yellow metal can be expected to trade range bound during Friday and trading session to come the following week.

Prices Flat

However there is a chance for Gold to gain momentum if US President continues his “America first” approach and this causes trouble with major allies of US during trade war related talks expected to take place in G7 summit. Silver price also fell on early Friday’s trading hours post managing to breach the wider price band which dominated the metal in recent times. On Thursday XAGUSD managed to move as high as $16.89 however a shift in traders focus to G7 related news caused the pair to move back down to $16.70-$16.65 price handle. A few analysts on Thursday commented that Silver is likely to reach $20 per ounce by the end of the year, boosted by global growth and increased industrial demand and safe-haven bids amid geopolitical worries.

USDCAD Hourly

The WTI Crude Oil market rallied significantly during the trading session on Thursday, slamming into the $66 level. That is an area that has been supportive in the past, so it should now be resistance. The European Union has vowed to maintain the Iran nuclear deal despite the U.S. decision to exit, and Brussels has pushed back against Washington’s attempts to penalize European companies from doing business with Iran. However, the early evidence suggests that the EU is struggling to keep the deal alive, as European companies have already begun cutting business ties with the Islamic Republic. The WTIUSD pair is currently trading around $65.63 and has maintained movement in range of $65.91 to $65.45 for majority of Friday’s trading session so  far and the price is expected to continue in this range as trading session closes for the week while traders await new impetus from geo-political events that are to follow.

This article was originally posted on FX Empire

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