Raiding the office of Trump lawyer bothered the market sentiment by the end of the US session seizing Stormy Daniel documents and banking records drove the US equities indexes to pare most of their earlier gains and the future of them weighed down on the trading during the Asian session.
The news proved to the investors that the political risk in US is still on threatening their money in the equities markets.
After the investors tried to shrug off The Trade War and its expected implications in the beginning of the trading hours of this week sending the US equities up again, after dipping by the end of last week on Trump's announced consideration of imposing new levy on an additional of Chinese imports worth $100b.
While the markets are ahead of hearing The Chinese President Xi in the Asian Boao Forum talking about the Trade War, after reference from China to using the yuan devaluation for fighting in this War.
This reference worked on sending the Greenback up across the broad driving USD/JPY to tough 107.20, before easing down to 106.60 with risk appetite setting back again sending the Japanese yen up as a low cost financing currency.
While the demand for treasuries rose again sending UST 10yr yield down to 2.78%, after being close by 2.80%.
The gold could creep up to $1338 on the raiding on Michael Cohen office, after keeping trading below $1330 level shrugging off the raiding on the Syrian government's T4 air base near Homs. Russia blamed Israel for this bombing raid and said in the UN security council meeting yesterday the Syrian government chemical attack in Doma.
By God's will The Key economical market events are expected to be next Wednesday with the release of Mar US CPI which is expected to show to how far the inflationary pressure on the Fed to raise rate higher.
And also the minutes of the FOMC recent meeting which has been the first under Jerome Powel's leadership on last Mar. 20 and 21 to figure out why it raised The Fed Fund rate by 0.25% and tell more about the interest rates discounting in US.
XAU/USD rose to be again above its daily SMA50, while it's still underpinned over longer range by continued existence above its daily SMA100 and its daily SMA200.
XAU/USD could maintain existence above $1300 psychological level by forming a bottom at $1302.8 on last Mar. 1, after retreating from last Jan. 25 high at $1366.06.
XAU/USD is still bounded by trading between $1366.06$ and $1302.80 and it is now in the middle of this range on its fourth day of being below its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today $1353.36.
XAU/USD daily RSI-14 is referring now to existence inside its neutral area reading 52.861.
XAU/USD daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line inside its neutral territory at 52.916 leading to the upside its signal line which is lower in the same territory at 43.614.
Important levels: Daily SMA50 @ $1330, Daily SMA100 @ $1313 and Daily SMA200 @ $1295
The nearest S&R:
S1: $1302.80
S2: $1236.51
S3: $1204.74
R1: $1366.06
R2: $1375.20
R3: $1392.09