Gold corrects farther from 9-month tops, below $1315 level


   •  The USD builds on Friday’s post-data rebound and continues exerting pressure.
   •  US-China trade optimism dent safe-haven demand and add to the selling bias.
   •  Comments by a slew of FOMC members might provide a fresh directional impetus.

Gold extended last week's retracement slide from near nine-month tops and remained under some selling pressure for the second straight session on Monday.

The US Dollar built on Friday's late rebound, which came after stellar headline NFP print that showed the US economy created 304,000 jobs in January and was seen as one of the key factors exerting some downward pressure around the dollar-denominated commodity at the start of a new trading week. 

The latest US monthly jobs report was followed by the release of upbeat US ISM manufacturing PMI, which coupled with a goodish pickup in the US Treasury bond yields helped ease the post-FOMC US Dollar bearish pressure and exerted some additional downward pressure on the non-yielding yellow metal. 

The profit-taking slide remained unabated through the early European session on Monday and was further weighed down by growing optimism over a possible resolution of the US-China trade disputes, which tends to dampen the precious metal's perceived safe-haven status. 

Moving ahead, market participants now look forward to comments from a slew of influential FOMC members this week, which might influence expectations for a pause in the rate hike cycle and eventually provide a fresh directional impetus for the commodity's near-term trajectory. 

Technical levels to watch

XAU/USD

Overview:
    Today Last Price: 1313.62
    Today Daily change: -4.28 pips
    Today Daily change %: -0.32%
    Today Daily Open: 1317.9
Trends:
    Daily SMA20: 1294.26
    Daily SMA50: 1268.78
    Daily SMA100: 1243.48
    Daily SMA200: 1229.8
Levels:
    Previous Daily High: 1323.54
    Previous Daily Low: 1316.3
    Previous Weekly High: 1326.25
    Previous Weekly Low: 1297.8
    Previous Monthly High: 1326.25
    Previous Monthly Low: 1275.9
    Daily Fibonacci 38.2%: 1319.07
    Daily Fibonacci 61.8%: 1320.78
    Daily Pivot Point S1: 1314.95
    Daily Pivot Point S2: 1312
    Daily Pivot Point S3: 1307.71
    Daily Pivot Point R1: 1322.2
    Daily Pivot Point R2: 1326.49
    Daily Pivot Point R3: 1329.44

 

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD extends gains as ADP NFP disappoints with only 167K

EUR/USD is trading above 1.1850, extending its gains after ADP's private-sector report badly misses expectations with an increase of only 167,000 jobs in July. The greenback had already been falling with yields.

EUR/USD News

XAU/USD bulls unstoppable, renews life-time highs near $2040

With ‘buy the dips’ emerging as the main underlying theme behind the gold price action so far this week, the bulls flex their muscles further to record fresh all-time highs near $2040.

Gold News

GBP/USD trades well above 1.31 amid dollar weakness

GBP/USD is advancing towards this month high at 1.3169, recovering as the dollar retreats. The UK government is under scrutiny for its management of the virus crisis. US Services PMIs are eyed. The ADP NFP missed with 167K.

GBP/USD News

ETH/BTC on retreat, BTC recovery gains traction

ETH/BTC has topped at $0.03528 on Tuesday and retreated to $0.03448 by the time of writing. The cross has lost about 1% since the start of the day. The RSI on a daily chart reversed to the downside, signaling that the price is ready for a correction from overbought territory.

Read more

WTI hits fresh two-week highs near $42.50 ahead of EIA data

WTI (futures on Nymex) extends its winning-streak into the third straight day on Wednesday, as the bulls challenge the July high of $42.51.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures