Gold trades with modest losses, just below $1490 level
|- Bulls seemed unimpressed by Friday’s softer Chinese Q3 GDP growth figures.
- A modest bounce in the US bond yields exerted some downward pressure.
- Traders now eye speeches by influential FOMC member for a fresh impetus.
Gold edged lower since the early European session on Friday and is currently placed near the lower end of its daily trading range, around the $1488-87 region.
The precious metal continued with its struggled to gain any meaningful traction and remained well within the recent trading range held over the past one week or so, awaiting fresh catalyst before the next leg of a directional move.
Traders still seemed to be reluctant
The safe-haven Gold failed to benefit from Friday's weaker Chinese GDP print, which dropped to a near 30-year low level of 6.0% in the third quarter, though was largely offset by the recent optimism over a partial US-China trade deal.
Meanwhile, a modest intraday pickup in the US Treasury bond yields – though did little to revive the US Dollar demand – turned out to be a key factor exerting some pressure on the non-yielding yellow metal on the last day of the week.
The downside, however, remained limited amid firming expectations that the Fed will cut interest rate in October and a subdued USD demand, which tends to underpin demand for dollar-denominated commodities – including Gold.
In absence of any major market-moving economic releases from the US, it will be prudent to wait for a strong follow-through selling before traders start positioning for any meaningful intraday depreciating move below $1480 support zone.
Later during the US session, speeches by influential FOMC members – Dallas Fed President Robert Kaplan, Kansas City Fed President Esther George and Fed Governor Richard Clarida – will be eyed for short-term trading impetus.
Technical levels to watch
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.