Precious Metal:: Yellow metal prices cut down on Thursday, dropping certain of its safe-haven demand as marks of improvement in U.S.-China trade talks reawakened a rally in stock markets. China and the United States have settled to cancel, in phases, the tariffs forced during their lengthened trade war, the Chinese commerce ministry said, without specifying a timetable. An interim trade agreement is broadly anticipated to contain a U.S. pledgee to scrap tariffs planned for Dec. 15 on about $156 billion worth of Chinese imports, comprising cell phones, laptop computers and toys. The euro zone economy is expected to grow sluggish than previous projected this year and next, the European Commission estimate on Thursday, because of global trade war, geopolitical pressures and Brexit. month, the U.S. Federal Reserve cut interest rates for the third time this year to support and tolerate American progress, but indicated there would be no further declines except the economy took a turn for the worse, interest rates decreases the opportunity cost for holding non-yielding gold.
On hourly charts, MCX Gold is currently trading at 38021 levels more than 0.55% lower than previous close. Today it opened at 38214 slightly lower made a high of 38245 during the day & made a low of 37942 level. ADX is currently at 25.29 level & RSI is currently at 42.31 which is giving no sign of divergence. Currently it is trading below its 20 & 50 daily moving averages. It seems like it will be keep trading in the range of 37780 & 38320 today.