Gold climbs back above $1225 level amid weaker USD

Haresh Menghani FXStreet

• Renewed USD weakness helps regain some positive traction on Wednesday.
• Cautiousness ahead of Trump-Junker trade talks provides an additional boost.
• Fed rate hike prospects might continue to keep a lid on any meaningful up-move.

Gold edged higher through the early European session on Wednesday and is currently placed at the top end of its daily trading range, above $1225 level.

After yesterday's good two-way moves, the precious metal regained some positive traction and could be headed back towards overnight swing high. Some renewed US Dollar weakness was seen as one of the key factors boosting demand for dollar-denominated commodities - like gold.

This coupled with some nervousness ahead of a crucial trade-related meeting between the US President Donald Trump and European Commission President Jean-Claude Juncker extended some additional support to the precious metal's safe-haven appeal.

Meanwhile, the ongoing slide in the US Treasury bond yields remained supportive of a mildly positive tone surrounding the non-yielding yellow metal, albeit Fed rate hike prospects might continue to keep a lid on any meaningful up-move.

Looking at the broader picture, the commodity has struggled to register any meaningful recovery from one-year lows set last Thursday and the recent price action clearly suggests increasing selling interest on every attempted up-move.

Hence, it would be prudent to wait for a strong follow-through buying interest before confirming that the commodity might have bottomed out and traders start positioning for any further up-move in the near-term.

Technical levels to watch

The $1230 area might continue to act as an immediate strong resistance, above which a fresh bout of short-covering could lift the metal further towards $1240-42 supply zone. On the flip side, the $1222-21 zone now seems to have emerged as an immediate support, which if broken might turn the commodity vulnerable to head back towards testing YTD lows, around the $1212-11 region.

Author

Haresh Menghani

FXStreet

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

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.