Gold drops to five-day lows near $1,490 as markets start pricing a US-China trade deal


  • China is reportedly ready to make a partial trade deal with the United States (US).
  • Wall Street's main indexes cling to daily gains.
  • US Dollar Index fails to break above the 99 mark.

The XAU/USD pair fluctuated in a relatively tight range near the $1,500 mark throughout the day before coming under strong bearish pressure and slumping to a fresh five-day low of $1,488 in the last hour. 

Reports of China looking to make a trade deal with the United States (US) on parts of the negotiations both sides agree upon and to present a timetable to solve the harder issues next year provided a boost to the market sentiment and the safe-have gold struggled to find demand. As of writing, the pair was trading near $1,492, down 0.85% on a daily basis.

The 10-year US Treasury bond yield extended its rebound and is now looking to finish the day with a gain of more than 1%. Additionally, Wall Street's three main indexes, which started the day in the negative territory, are now back in the positive territory to reflect the upbeat mood. 

On the other hand, the initial market reaction to this development lifted the US Dollar Index a tad above the 99 mark to further weigh on the pair. However, the index seems to have lost its momentum and is now up only 0.08% on the day at 98.92, allowing the pair to recover a small portion of its losses.

There won't be any macroeconomic data releases from the US in the remainder of the day and the market's risk perception is likely to continue to drive the pair's action.

Technical levels to watch for

XAU/USD

Overview
Today last price 1491.83
Today Daily Change -12.91
Today Daily Change % -0.86
Today daily open 1504.74
 
Trends
Daily SMA20 1500.02
Daily SMA50 1500.07
Daily SMA100 1433.58
Daily SMA200 1365.24
 
Levels
Previous Daily High 1510.92
Previous Daily Low 1496.5
Previous Weekly High 1519.04
Previous Weekly Low 1455.5
Previous Monthly High 1557.03
Previous Monthly Low 1464.61
Daily Fibonacci 38.2% 1502.01
Daily Fibonacci 61.8% 1505.41
Daily Pivot Point S1 1497.19
Daily Pivot Point S2 1489.64
Daily Pivot Point S3 1482.77
Daily Pivot Point R1 1511.6
Daily Pivot Point R2 1518.47
Daily Pivot Point R3 1526.02

 

 

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 losses toward 1.1250 amid coronavirus concerns

EUR/USD is trading closer to 1.1250 as concerns about US coronavirus cases are growing. Eurozone finance ministers are meeting ahead of next week's summit.  US PPI and updated COVID-19 statistics are awaited.

EUR/USD News

GBP/USD pressured under 1.26 amid risk-off mood, Brexit uncertainty

GBP/USD is trading below 1.26, off the highs. Rising US coronavirus cases are pushing markets lower and the safe-haven dollar higher. Concerns about Brexit and the UK refusal to participate in the EU coronavirus vaccine scheme are weighing on sterling. 

GBP/USD News

Gold: Well-defined battle lines point to range play around $1800

Gold nurses losses around the $1800 following Thursday’s good two-way businesses. The risk-off theme amid COVID-19 concerns continues to bode well for the US dollar. 

Gold News

Canada Net Change in Employment June Preview: June is looking better and better

Job gains expected to more than double in June. Unemployment rate to drop to 12% from 13.7 in May. Ivey PMI was twice its forecast in June, highest since Nov 2019. USD/CAD would benefit from better June job figures.

Read more

WTI extends Thursday’s drop as virus cases rise

Oil extends overnight sell-off as virus concerns dominate the market sentiment. The resurgence of virus cases in the US has fueled lockdown fears. The US on Thursday registered 65,551 new cases, a record for a 24-hour period.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures