Gold declining ahead of RBA’s rate decision, Chinese data

Place Gold is retreating from $1,990 as the yield on US Treasury notes increases slightly. Early on Tuesday, the market is becoming more nervous as the RBA is expected to hike interest rates by 25 basis points. China data will also be discussed during Tuesday’s early trading session.


As of this writing, gold prices were down 0.75% at $1,977.50 on Monday due to an increase in US Treasury yields, which caused the XAU/USD to retrace its losses from last Friday’s $2,000 handle.

In the past two weeks, gold has been rejected multiple times from the $2,000 handle; therefore, a technical ceiling may be baked into the XAU/USD pair. The economic calendar begins on Tuesday with some China data, and the Reserve Bank of Australia is expected to hike interest rates by 25 basis points.

China’s Trade Balance data is released in the early Tuesday market session in Aisa, prior to the release of the RBA’s anticipated rate hike. China’s YoY exports are predicted to print at -3.1% compared to September’s reading of -6.2%; both the country’s imports and exports are predicted to improve for the year through October.

The market median estimate for October’s annualised imports is -5.4%, which is a significant improvement over September’s -6.2%, but it still shows very little upside.

China’s overall trade balance for the year through October is predicted to print higher at $81.85 billion in US dollars (USD) than September’s showing of $77.71 billion USD, with a stronger rebound in exports anticipated.

Barring a bullish rebound, Spot Gold appears destined for a bearish correction on the daily candlesticks, with XAU/USD starting to test farther away from the $2,000 major handle with each rejection.

Trading into seven-month highs, gold bids appear exhausted, and technical indicators are starting to show warning signs of an imminent bear move.