Gold futures are finally showing some downside momentum after consolidating inside a trading range for ten sessions. The market is still inside its January 4 range of $1300.40 to $1278.10 but at least it’s within striking distance of the bottom of the range which could trigger an even further decline into a technical price target at $1268.50.

At 0949 GMT, February Comex gold futures are trading $1284.40, down $7.70 or -0.60%.

Gold is being pressured today by a firmer U.S. Dollar, higher U.S. Treasury yields and increased demand for higher risk assets. An easing of tensions around the U.S.-China trade dispute is the catalyst behind the selling pressure, however, there are still enough uncertainties to keep buyers interested in the long side of the gold market. Also providing support is the U.S. government shutdown and the turmoil over Brexit.

According to a Wall Street Journal report on Thursday, U.S. Treasury Secretary Steven Mnuchin had considered easing tariffs imposed on Chinese imports. However, a Treasury official denied the report.

Longer-term, gold is being bolstered by the dovish Federal Reserve which has signaled it may not raise interest rates this year.

Although we may see some downside action today due to the technical chart pattern, there is enough potentially bullish and bearish news to hold the market inside a trading range.

This article was originally posted on FX Empire

More From FXEMPIRE:

• Bitcoin Cash – ABC, Litecoin and Ripple Daily Analysis – 20/01/19

• Brent Crude Oil Price Update – Needs to Take Out $63.91 to Reaffirm Change in Trend

• U.S. Stocks Post Fourth Week of Gains Fueled by Earnings, Trade News

• USD/JPY Forex Technical Analysis – Testing Short-Term Retracement Zone; Strengthens Over 110.452, Weakens Under 109.445

• U.S Mortgages – Rates Hold Steady, While Applications Rise Further

• Bitcoin Cash – ABC, Litecoin and Ripple Daily Analysis – 19/01/19