Gold aiming to break through 100-DMA barrier

Haresh Menghani FXStreet

Gold gained additional traction on Monday and rose back to the highest level since November amid fading expectations for near-term Fed rate-hike action.

Currently trading near $1122 region, off session peak level of $1225, Friday's mixed US jobs report, especially dismal average earnings growth, continues to weigh on the US Dollar and is supportive of the bid tone surrounding the yellow metal for the third consecutive session.

Adding to this, lower-than-expected release of Caixin Services PMI from China prompted some safe-haven buying and provided an additional boost to the precious metal.

Looking at the broader picture, last week’s rebound from sub-$1200 mark and subsequent retest of 100-day SMA strong resistance seems to suggest the underlying strength in the metal’s ongoing up-move. Hence, the metal seems more likely to build on to its near-term upward trajectory, albeit needs a convincingly break through 100-day SMA hurdle to confirm the break-out.

Technical levels to watch

A clear break above $1225 barrier (100-day SMA), the metal is likely to accelerate the up-move towards $1233 level (Nov. 16 high) before heading towards $1250 horizontal resistance. On the flip side, weakness below $1220 level now seems to find support near $1210 area below which the commodity is likely to turn vulnerable to head back towards retesting sub-$1200 support near $1186-85 region, with $1200 psychological mark providing some intermediate support.

1. R3 1220.14
2. R2 1220.12
3. R1 1220.10
PP 1220.08
1. S1 1220.06
2. S2 1220.04
3. S3 1220.02

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD breaches below 1.3500, two-day lows

GBP/USD faces renewed selling pressure, eroding the earlier advance and slipping back to the sub-1.3500 region on Wednesday. Cable’s loss of upside momentum follows the resurgence of the demand for the Greenback amid steady geopolitical tensions. Looking ahead, the British Pound is expected to remain under scrutiny in light of the release of UK GDP data on Thursday.

EUR/USD deflates to weekly troughs near 1.1520

EUR/USD accelerates its daily correction, coming close to the 1.1520 region, or weekly lows, in the latter part of Wednesday’s session. The pair’s drop comes amid the US Dollar’s firm rebound, as investors seem to have fully digested the latest US inflation data.

Gold challenges $4,400 amid USD bounce

Gold now gives away part of its earlier advance to the vicinity of the $4,450 mark per troy ounce and approaches the $4,400 hurdle on Wednesday. The yellow metal’s partial loss of momentum comes as the US Dollar manages to regain balance in the wake of the CPI-led decline.

Ripple lags recovery as exchange reserves expand

Ripple is trading within a broadly constrained technical structure, with support at $1.00 and key moving averages limiting its recovery potential. In August, the remittance token declined by approximately 6.5%, extending its total pullback to around 14% from July's $1.18 peak.

911 million shares freed: Why SpaceX rallied into its own supply

The most heavily trailed supply event of the year landed on August 6, and the SpaceX (SPCX) stock went up. Roughly 911.5 million shares held by insiders and early backers became eligible to trade, around 43% more than the entire float sold at the listing.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.