- The de-escalation of geopolitical tensions weighed on safe-haven assets.
- Gold extended previous session’s sharp retracement from multi-year tops.
Gold continued losing ground for the second consecutive session on Thursday and dropped to fresh weekly lows, around the $1540 region in the last hour.
The precious metal extended the previous session's sharp intraday pullback from multi-year tops – levels beyond the $1600 round-figure mark – witnessed some follow-through long-unwinding trade on Thursday amid fading safe-haven demand.
Gold weighed down by improving risk sentiment
Geopolitical tensions in the Middle East decrease significantly on Wednesday after the US President Donald Trump opted to impose new economic sanction on Iran rather than calling for further military action against the Islamic Republic.
The latest development led to a turnaround in the global risk sentiment and was evident from a positive move across equity markets. Markets unwound the risk-off moves, which eventually weighed heavily on traditional safe-haven assets.
The risk-on mood was further inforced by a strong intraday rally in the US Treasury bond yields, which extended some support to the US dollar and further played its part in driving flows away from the non-yielding yellow metal.
Meanwhile, the latest leg of a downfall over the past hour or so could further be attributed to some follow-through technical selling below weekly lows support near the $1555 region, paving the way for additional near-term weakness.
Moving ahead, there isn't any major market-moving economic data due for release from the US and hence, investors' appetite for riskier assets might continue to act as a key determinant of the commodity's move ahead of Friday's NFP report.
Technical levels to watch
|Today last price||1546.38|
|Today Daily Change||-14.26|
|Today Daily Change %||-0.91|
|Today daily open||1560.64|
|Previous Daily High||1611.3|
|Previous Daily Low||1552.55|
|Previous Weekly High||1553.4|
|Previous Weekly Low||1510.85|
|Previous Monthly High||1525.1|
|Previous Monthly Low||1454.05|
|Daily Fibonacci 38.2%||1574.99|
|Daily Fibonacci 61.8%||1588.86|
|Daily Pivot Point S1||1538.36|
|Daily Pivot Point S2||1516.08|
|Daily Pivot Point S3||1479.61|
|Daily Pivot Point R1||1597.11|
|Daily Pivot Point R2||1633.58|
|Daily Pivot Point R3||1655.86|
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.