Gold entered Tuesday’s trading session under pressure as President Xi Jinping’s conciliatory message at the Boao Forum soothed concerns over a potential global trade war.

Losses were later recouped by a softening US Dollar, however. While the return of risk appetite has the ability to leave Gold depressed and unloved, a vulnerable Dollar could come to the rescue. If the Dollar continues to weaken amid lingering uncertainty, Gold has the potential to appreciate further despite the improving risk sentiment. Taking a look at the technical picture, the yellow metal continues to find comfort within a tight range on the daily charts, with support at $1324 and resistance at $1360. A breakout above $1340 could encourage an incline higher towards $1360. Alternatively, a failure for bulls to defend $1324 could result in prices testing $1310.

Sterling extends gains against Dollar  

Sterling bulls were instilled with fresh impetus after BoE member Ian McCafferty stated that UK rates should be raised again without delay.

The upside was fueled by ongoing Dollar weakness which elevated the GBPUSD towards 1.4180. With heightened market expectations of a UK rate hike in May stimulating appetite for the Pound, further gains could be on the cards near term. Taking a look at the technical picture, the GBPUSD is turning increasingly bullish on the daily charts. Prices are trading above the 50 Simple Moving Average while the MACD has crossed to the upside. The currency pair has scope to challenge 1.4230, as long as bulls can defend the 1.4100 level. A scenario in which prices sink below 1.4100 could result in a decline back to 1.3920.

Yen weakens on renewed risk appetite

The Japanese Yen attracted a school of sellers on Tuesday as investors lost their appetite for safe-haven assets amid the easing of trade war concerns.

A vulnerable Dollar offered little support to the Yen’s depreciation, with the USDJPY trading around 107.00 as of writing. Taking a look at the technical picture, the USDJPY has found resistance around the 107.00 region. Sustained weakness below this level could encourage a decline back towards 106.00 and 105.50. Alternatively, a solid daily close above 107.00 may provide bulls with enough confidence to challenge 107.80.

GBPJPY breaks above 151.50

A weakening Japanese Yen has propelled GBPJPY above 151.50 during Tuesday’s trading session. With the Yen potentially weakening further amid the risk-on mood, and Sterling supported by rate hike expectations, GBPJPY is likely to venture higher. Technical traders will continue to monitor whether bulls are able to secure a daily close above the 151.50 resistance level.  The next key levels of interest above 151.50 can be found at 152.60 and 153.10, respectively. Bulls’ failure to maintain control above 151.50 could encourage a decline to 150.60.