Gold picks up a bid amid losses in the US stock futures

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Gold, a traditional safe-haven asset, is drawing bids as the US stock futures are signaling risk aversion. 

The yellow metal is trading at $1,720 at press time, representing a 0.15% gain on the day, having hit a low of $1,712 in early Asia.

Meanwhile, the futures tied to the S&P 500, Wall Street's benchmark index, is down 0.6%. Asian stocks are also flashing red with Australia's S&P/ASX 200 index leading the way lower with a 1.11% decline. 

Investors seem to have adopted a cautious stance ahead of an expected announcement by President Donald Trump on China on Friday. "All evidence points to some ineffectual sanctions against individuals and companies but Trump is unpredictable and this is a chance for him to flex his 'tough on China' muscles ahead of the election," noted FX analyst Adam Button. 

China imposed the controversial security law on Hong Kong on Thursday, curbing the City's autonomy. Washington had warned earlier this week that it would impose sanctions on China if the dragon nation passes the bill. Now that the law has been implemented, President Trump is expected to keep his word. 

The risk sentiment is likely to remain under pressure ahead of Trump's press conference and keep the yellow metal better bid - more so, as the dollar index is trading near the eight-week low of 98.35 reached on Thursday. The dollar index tracks the value of the greenback against major currencies. 

Technical levels

R3 1751.92
R2 1739.79
R1 1729.68
PP 1717.55
S1 1707.44
S2 1695.31
S3 1685.2