Gold dips below the psychological $1,500 handle

Bears can now approach $1,478 as the 13 August volatility spike low.
Risks from various geopolitics settle down and gold is on the back foot.

The price of gold is dishevelled as markets focus on the measures by central banks designed to spur growth and as risks from various geopolitics settle down. Spot gold has dropped below the 1500 handle for the first time since late Augst, extending the losses that it took overnight.

Prices were dropping over 0.40% and travelling between a high of $1,515 to a low of $1,497.76, ending on Wall Street around $1,500. December gold lost around $5.10, or 0.3%, to trade at $1,510.40 an ounce after trading as high as $1,523.80 - extending the 0.9% loss from last week.

Eyes on the bond market and equities

Traders are keeping a close eye on the US 2-year treasury yields rose from 1.53% to 1.59%, while the 10-year yield rose from 1.56% to 1.64%, despite no obvious fresh catalysts spurring theoves, just an overall better risk sentiment being felt - Dow booked its fourth gain in a row, rising 38.05 points, or 0.1%, to 26,835.51. Meanwhile, however, markets are pricing 25bp of easing at the 19 September.

Gold levels

While pressured below the 21-day moving average as well as the 23.6% Fibonacci (Fibo) retracement of the July lows to recent swing highs, bears can now approach 1,478 as the 13 August volatility spike low which guards the 19 July swing highs at 1,452.93. 1,550 guards prospects for 1,590 as the 127.2% Fibo target area. Thereafter, bulls can target the 78.6% Fibo of the 2011 to YTD range located in the 1,730s ahead of the triple-top peaks of the 1,800s.

Share: Feed news

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.