• 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
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