SPOT GOLD – near-term bias remains bullish despite strong upside rejection

Slobodan Drvenica Windsor Brokers

GOLD

Spot Gold remains constructive on Thursday but holding under new four-month high at $1327, posted on Wednesday.
The yellow metal pared gains as dollar managed to regain ground after being hit by news from China regarding reduction or halt of US bonds purchases.
Completion of near-term $1326/$1308 correction was positive signal, however, no clear break higher suggests the price may stay in extended consolidation before bulls resume.
Overall structure is firmly bullish and supports continuation of steep uptrend from $1236 which approached its initial target at $1328 (Fibo 76.4% of $1357/$1236) and eyes for further advance in the near-term.
Rising 10SMA which contained pullback, offers initial support at $1313 (reinforced by top of thick ascending 4-hr cloud, spanned between $1313 and $1294) and guarding pivots at $1308/05, loss of which would soften near-term tone.

Res: 1320; 1328; 1334; 1340
Sup: 1313; 1310; 1308; 1305

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD extends slide toward 1.1800 on renewed USD strength

EUR/USD extends its daily slide and trades at a fresh weekly low below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD falls below 1.3550, pressured by weak UK jobs report

GBP/USD remains under heavy bearish pressure and falls toward 1.3500 on Tuesday. The UK employment data highlighted worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.