- Growing trade optimism exerted some heavy pressure on Thursday.
- The prevalent USD selling bias helped regain some positive traction.
- Unrest in the Middle East provided an additional boost in the last hour.
Gold built on its intraday positive move and climbed to fresh session tops in the last hour, recovering a major part of the previous session's intraday downfall.
The incoming positive trade-related headlines on Thursday boosted investors' appetite for riskier assets and weighed heavily on traditional safe-haven assets – like Gold. The risk-on mood was further evident from a strong pickup in the US Treasury bond yields, which further collaborated towards driving flows away from the non-yielding yellow metal.
Weaker USD/reviving safe-haven demand supportive
The precious metal finally settled below the key $1500 psychological mark, near the lower end of its daily trading range, but managed to regain some positive traction on the last trading day of the week. The prevalent US Dollar selling bias was seen as one of the key factors underpinning demand for the dollar-denominated commodity.
Thursday’s softer US CPI figures reinforced market expectations that the Fed will cut interest rates further at its upcoming monetary policy meeting on October 29-30. This coupled with a modest intraday pullback in the US Treasury bond yields kept exerting some downward pressure on the Greenback through the early European session on Friday.
Meanwhile, the latest leg of an uptick over the past hour or so was further supported by renewed fears about a further escalation of geopolitical tensions in the Middle East, especially after the Islamic Republic News Agency reported an explosion on an Iranian tanker near the Saudi Arabian port city of Jeddah.
It will now be interesting to see if the precious metal is able to capitalize on the positive move as investors await the outcome from the crucial US-China trade negotiations. Later during the early North-American session, the release of Prelim UoM consumer sentiment index from the US will be looked upon for some short-term trading opportunities.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price lacks firm intraday direction, holds steady above $2,300 ahead of US data
Gold price remains confined in a narrow band for the second straight day on Thursday. Reduced Fed rate cut bets and a positive risk tone cap the upside for the commodity. Traders now await key US macro data before positioning for the near-term trajectory.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.