Gold refreshes session tops, inches back closer to $1320 level
| • Renewed USD selling bias helps defend $1313 important support.
• Risk-off mood provides an additional to safe-haven appeal.
Gold extended its steady climb move from weekly lows and has now moved to fresh session tops, around the $1318-19 region.
The precious metal once again managed to find some buying interest near the $1313 support area and has now recovered a part of previous session's sharp slide. Renewed US Dollar selling pressure, triggered by latest US political woes and fears of a potential trade war, was seen as one of the key factors underpinning demand for dollar-denominated commodities - like gold.
This coupled with a fresh wave of global risk aversion trade, as depicted by a sea of red across equity markets, provided an additional boost to traditional safe-haven assets and collaborated to the yellow metal's recovery move.
Looking at the broader picture, the commodity has been struggling for firm near-term direction and remains within a one-week-old trading range. Hence, traders are likely to wait for a decisive break in either direction before positioning for the commodity's near-term trajectory.
Technical levels to watch
Immediate resistance is pegged near $1321 level, above which the metal seems to retest $1325-26 supply zone before eventually darting to $1330 resistance. On the flip side, $1313 level might continue to act as an immediate support, which if broken is likely to accelerate the fall towards 100-day SMA support near the $1304 region.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.