Gold consolidates in a range below weekly tops set on Thursday

Haresh Menghani FXStreet

• Stability in financial markets undermines the commodity’s safe-haven demand.
• A goodish bounce in the US bond yields further collaborated towards capping gains.
• A subdued USD price action might help limit downside ahead of the US macro data.

Gold held steady through the early European session on Friday and was seen consolidating the overnight strong up-move to weekly tops.

A combination of supporting factors provided a strong boost to the precious metal on Thursday and provided the required momentum to make it through the $1277-78 horizontal resistance.

A further escalation in the US-China trade disputes triggered a selloff across global equity markets and turned out to be one of the key factors underpinning the precious metal's safe-haven status.

The global flight to safety dragged the US Treasury bond yields sharply lower and prompted some US Dollar long-unwinding trade and further boosted demand for the dollar-denominated commodity.

However, with some initial signs of stability in the global financial markets, a goodish rebound in the US bond yields kept a lid on any strong follow-through up-move for the non-yielding metal.

Meanwhile, the downside remained cushioned amid a subdued USD price action as market participants now look forward to the release of US durable goods orders data for some fresh impetus.

Technical levels to watch

XAU/USD

Overview
Today last price	1283.99
Today Daily Change	2.06
Today Daily Change %	0.16
Today daily open	1281.93

Trends
Daily SMA20	1283.14
Daily SMA50	1289.73
Daily SMA100	1296.7
Daily SMA200	1259.44

Levels
Previous Daily High	1287.3
Previous Daily Low	1271.86
Previous Weekly High	1311.8
Previous Weekly Low	1275.09
Previous Monthly High	1310.7
Previous Monthly Low	1265.6
Daily Fibonacci 38.2%	1281.4
Daily Fibonacci 61.8%	1277.76
Daily Pivot Point S1	1273.43
Daily Pivot Point S2	1264.93
Daily Pivot Point S3	1258
Daily Pivot Point R1	1288.86
Daily Pivot Point R2	1295.8
Daily Pivot Point R3	1304.3

Author

Haresh Menghani

FXStreet

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

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