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Gold climbs to fresh two-week tops, above $1505 level

  • Reviving safe-haven demand helped build on the recent positive move.
  • Fed rate cut expectations/subdued USD price action remained supportive.

Gold edged higher on the last trading day of the week and climbed to fresh two-week tops, around the $1507 region in the last hour.
 
The precious metal gains some follow-through traction for the fourth straight session on Friday and added to this week's positive move, further beyond the key $1500 psychological mark amid reviving safe-haven demand.

Bulls trying to seize near-term control

Against the backdrop of growing concerns about slowing global economic growth, risk of an early snap election in the UK weighed on investors' sentiment and drove flows towards traditional safe-haven assets – including Gold.
 
The global flight to safety was further evident from a modest downtick in the US Treasury bond yields, which coupled with firming Fed rate cut expectations provided an additional boost to the non-yielding yellow metal.
 
Adding to this, a subdued US Dollar price action further underpinned demand for the dollar-denominated commodity, albeit the uptick seemed to lack any strong bullish conviction on the back of US-China trade optimism.
 
Reports suggested that China aims to buy at least $20 billion of American farm products as a part of the phase one deal in the first year. This would bring purchases back to 2017 levels, or before the US-China trade war began.
 
In the absence of any major market-moving economic releases from the US, the broader market risk sentiment and the USD price dynamics might produce some short-term trading opportunities on the last day of the week.

Technical levels to watch

XAU/USD

Overview
Today last price1504.61
Today Daily Change1.31
Today Daily Change %0.09
Today daily open1503.3
 
Trends
Daily SMA201493.02
Daily SMA501505.19
Daily SMA1001461.14
Daily SMA2001379.63
 
Levels
Previous Daily High1504.25
Previous Daily Low1488.1
Previous Weekly High1497.95
Previous Weekly Low1477.15
Previous Monthly High1557.03
Previous Monthly Low1464.61
Daily Fibonacci 38.2%1498.08
Daily Fibonacci 61.8%1494.27
Daily Pivot Point S11492.85
Daily Pivot Point S21482.4
Daily Pivot Point S31476.7
Daily Pivot Point R11509
Daily Pivot Point R21514.7
Daily Pivot Point R31525.15

Author

Haresh Menghani

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

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