Gold: Back in the red around $ 1460 amid USD comeback


  • Gold bears return as US dollar attempts recovery from weekly lows.
  • Uptick in Treasury yields and US equity futures also weigh on gold.
  • Focus on trade developments and risk trends for fresh impetus.  

Gold failed to capitalize on its recent recovery and fell back into the red zone on Tuesday, in response to the broad-based US dollar come back from weekly lows amid a bounce in the US Treasury yields. At the press time, the yellow metal trades near daily lows of $ 1459.92, down 0.20% so far.

The spot rallied nearly $ 10 on Monday after the US dollar was dumped across its main competitors on downbeat US ISM Manufacturing PMI and President Trump’s currency jawboning.

However, the recovery lost legs near 1465 levels, a surprise upturn in the Chinese manufacturing sector eased China's economic slowdown fears and acted as a drag on the safe-haven gold.

Despite the renewed weakness in the precious metal, the downside appears capped as Trump’s new tariffs on Brazil and Argentina revives trade gloom and keeps the safe-haven bids for gold somewhat underpinned.

Further, reports that India’s gold imports in November jumped 78% from a month earlier to the highest level in 5 months also offer some support to the gold bulls. Note that India is the world’s second-biggest gold consumer.

Reuters quoted an Indian government source, as saying the country imported 71 tonnes of gold in November vs. 40 tonnes imported in October.

In the day ahead, gold prices will continue to get influenced by the USD dynamics and risk sentiment, as markets await fresh cues on the trade front amid a lack of first-tier US macro news.

Gold Technical levels to watch

XAU/USD

Overview
Today last price 1460.61
Today Daily Change -2.34
Today Daily Change % -0.16
Today daily open 1463.02
 
Trends
Daily SMA20 1465.91
Daily SMA50 1484.7
Daily SMA100 1485.46
Daily SMA200 1402.03
 
Levels
Previous Daily High 1465.04
Previous Daily Low 1454.05
Previous Weekly High 1466.62
Previous Weekly Low 1450.74
Previous Monthly High 1515.38
Previous Monthly Low 1445.8
Daily Fibonacci 38.2% 1458.25
Daily Fibonacci 61.8% 1460.84
Daily Pivot Point S1 1456.37
Daily Pivot Point S2 1449.72
Daily Pivot Point S3 1445.38
Daily Pivot Point R1 1467.36
Daily Pivot Point R2 1471.7
Daily Pivot Point R3 1478.35

 

 

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