11 June 2019 : Safe haven assets are holding steady, with Gold trading below the $1330 level, while the Japanese Yen is trading within the 108 band against the US Dollar.

Safe havens appear intent on holding onto recent gains, at least until the coast is clear from downside risks to the global economy, although such a risk-on outlook seems highly unjustifiable at this point in time. Rising expectations of a formalized US-China trade deal occurring this month could chip away at the gains enjoyed by safe haven assets since late May, although the ensuing losses may be mitigated by concerns over the economic damage already inflicted by heightened US-China trade tensions.

Looking at the technical picture, Gold seems to be on standby on the daily charts with prices trading above the $1324 support level as of writing. Should $1324 prove to be reliable support, the precious metal has scope to rebound towards levels not seen in 14 months, above $1347.

Reporting for EasyKobo on Tuesday , 11 June 2019 in Lagos, Nigeria

Source:Lukman Otunuga, FXTM Research Analyst