Gold corrects from 2-week tops, back near $1600 mark


  • Gold witnessed some intraday profit-taking amid recovering global risk-sentiment.
  • Some follow-through USD long-unwinding seemed to help limit any further downside.

Gold extended its intraday pullback from near two-week tops and momentarily slipped below the $1600 mark in the last hour, albeit quickly recovered a bit thereafter.

Following the previous day's strong rally of around 6%, the safe-haven precious metal witnessed some profit-taking and for now, seems to have snapped three consecutive days of winning streak amid improving risk sentiment.

The Fed's unprecedented QE program to buy unlimited amounts of Treasury bonds and mortgage-backed securities, along with the US Senate's agreement on a stimulus package boosted investors' confidence and weighed on traditional safe-haven assets.

The risk-on flow was further reinforced by a goodish pickup in the US Treasury bond yields and exerted some additional pressure on the non-yielding yellow metal. However, some follow-through US dollar long-unwinding trade helped limit the downside.

The greenback remained on the defensive amid easing market concerns about tightening liquidity – which had recently underpinned its demand as the global reserve currency – and was seen as one of the key factors lending some support to the dollar-denominated commodity.

Hence, it will be prudent to wait for some strong follow-through selling before confirming that the recent bounce from YTD lows might have already run out of the steam and positioning for any further near-term depreciating move.

Market participants now look forward to the US economic docket, highlighting the release of Durable Goods Orders data for February, in order to grab some short-term trading opportunities later during the early North-American session.

Technical levels to watch

XAU/USD

Overview
Today last price 1606
Today Daily Change -22.75
Today Daily Change % -1.40
Today daily open 1628.75
 
Trends
Daily SMA20 1590.63
Daily SMA50 1584.57
Daily SMA100 1537.18
Daily SMA200 1505.67
 
Levels
Previous Daily High 1633.71
Previous Daily Low 1552.78
Previous Weekly High 1561
Previous Weekly Low 1451.3
Previous Monthly High 1689.4
Previous Monthly Low 1547.56
Daily Fibonacci 38.2% 1602.79
Daily Fibonacci 61.8% 1583.7
Daily Pivot Point S1 1576.45
Daily Pivot Point S2 1524.15
Daily Pivot Point S3 1495.52
Daily Pivot Point R1 1657.38
Daily Pivot Point R2 1686.01
Daily Pivot Point R3 1738.31

 

 

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