• Improving risk-sentiment prompts some profit-taking during the Asian session.
• Subdued USD price action lends some support and might help limit the downside.
Gold witnessed some profit-taking move on Tuesday and eroded a part of the previous session's strong up-move to near one-month tops.
The overnight uptick was supported by an inversion of the 3-month and 10-year Treasury yields for the first time since 2007, which sparked fears of a potential US recession and underpinned the precious metal's relative safe-haven demand.
Bulls, however, failed to capitalize on the positive momentum, rather opted to take some profits off the table during the Asian session amid some initial signs of stability in the global financial markets and recovery in other riskier assets - like equities.
Meanwhile, a subdued US Dollar price action extended some support to the dollar-denominated commodity. This coupled with the ongoing Brexit drama and uncertainties over the US-China trade negotiations might further collaborate towards limiting any sharp corrective slide.
Hence, it would be prudent to wait for a strong follow-through selling before confirming that the commodity might have topped out in the near-term and traders start positioning for any further near-term depreciating move for the commodity.
Today's US economic docket, featuring the release of housing market data - housing starts and building permits, followed by the Conference Board's Consumer Confidence Index will now be looked upon for some short-term trading opportunities.
Technical levels to watch
Immediate support is pegged near the $1315-14 region, below which the commodity is likely to correct further towards $1309 horizontal level en-route the key $1300 psychological mark. On the flip side, the $1321-22 area now seems to have emerged as an immediate hurdle, which if cleared should lift the metal further towards its next major supply zone near the $1329-30 region.
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
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.