Gold clings to modest daily gains, around $1730 area


  • Gold gained some traction and built on the overnight rebound from multi-day lows.
  • The Fed’s move to expand the bond-buying program remained supportive of the uptick.
  • The upbeat market mood, a goodish picku in the US bond yields capped the upside.

Gold traded with modest gains through the early European session and was last seen hovering near daily tops, around the $1730 region.

The precious metal gained some positive traction on Tuesday and built on the previous day's intraday bounce from multi-day lows that came after the Fed announced to begin buying of investment-grade corporate bonds.

The Fed's move led to some follow-through selling around the US dollar and provided an additional boost to the dollar-denominated commodity, albeit the prevalent upbeat market mood kept a lid on any runaway rally.

The risk-on mood was reinforced by a goodish pickup in the US Treasury bond yields, which further collaborated towards capping gains for the non-yielding yellow metal and warrant some caution for bullish traders.

Hence, it will be prudent to wait for some strong follow-through buying, possibly beyond the $1740 horizontal resistance, before traders start positioning for any further near-term appreciating move.

Moving ahead, market participants now look forward to the release of the US monthly retail sales and the Fed Chair Jerome Powell's testimony before the Senate Banking Committee for some meaningful trading opportunities.

Technical levels to watch

XAU/USD

Overview
Today last price 1728.96
Today Daily Change 3.27
Today Daily Change % 0.19
Today daily open 1725.69
 
Trends
Daily SMA20 1722.58
Daily SMA50 1711.18
Daily SMA100 1652.04
Daily SMA200 1575.38
 
Levels
Previous Daily High 1736.19
Previous Daily Low 1704.28
Previous Weekly High 1744.75
Previous Weekly Low 1677.73
Previous Monthly High 1765.38
Previous Monthly Low 1670.72
Daily Fibonacci 38.2% 1716.47
Daily Fibonacci 61.8% 1724
Daily Pivot Point S1 1707.92
Daily Pivot Point S2 1690.14
Daily Pivot Point S3 1676.01
Daily Pivot Point R1 1739.83
Daily Pivot Point R2 1753.96
Daily Pivot Point R3 1771.74

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD drops below 1.1850 amid growing covid concerns

EUR/USD has dropped under 1.1850 as European coronavirus cases hit records. France exceeded 50K daily cases and Spain announced a state of emergency. US fiscal stimulus talks remain stuck ahead of the elections. 

EUR/USD News

GBP/USD pressured towards 1.3000 amid downbeat market mood

GBP/USD has been extending its losing streak amid a surge in COVID-19 cases in the UK and elsewhere. Investors are shrugging off reports of progress in Brexit talks. 

GBP/USD News

XAU/USD pushed and pulled in jittery market conditions

The price of gold has been testing the bearish commitments above the $1,900 psychological level following a brief spell below it, printing a low of $1,891.50.

Gold News

Bitcoin vs gold: Safe haven battle

A new idea has been floating around in Safe Haven Trading. Well, it’s not entirely new, but it’s quite controversial to say the least. For the longest time, gold has been considered to be the purest form of safe haven trading. 

Read more

WTI tumbles to fresh lows near $38.00 on demand, supply concerns

Prices of the barrel of the American benchmark for the sweet light crude oil trade on the defensive at the beginning of the week around the $38.50/40 band.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures