Gold: flatlined in Asia, focus on US stocks

• Escalating trade tensions weigh over risk assets.
• Gold could gain altitude as S&P 500 futures report losses.

Gold (XAU/USD) is trading comatose around $1,334 in Asia but may find bids during the day ahead as S&P 500 index futures indicate the stocks are likely to open on a negative note, courtesy of escalating US-China trade tensions.

On Tuesday, the Trump administration revealed plans for a 25 percent tariff on 1,333 Chinese products ranging from industrial robots to locomotives. The total value of the goods subject to the tariffs is approximately $50 billion.

Meanwhile, China immediately vowed to retaliate, boosting fears of full-blown US-China trade war. Consequently, the S&P 500 futures are reporting a 0.30 percent drop. So, the yellow metal could gain altitude on safe-haven appeal. Also, US ISM non-manufacturing release and the resulting action in the dollar index (DXY) could influence the yellow metal.

Gold Technical Levels

A break above $1,338 (10-day moving average) would open up upside towards $1,345 (April 2 high) and $1,352.4 (Jan. 29 high). On the downside, breach of support at $1,331.53 (session low) could yield a pullback to $1,329 (50-day moving average) and $1,321.25 (March 29 low).