Gold drops to fresh weekly lows, around $1540 level


  • 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

XAU/USD

Overview
Today last price 1546.38
Today Daily Change -14.26
Today Daily Change % -0.91
Today daily open 1560.64
 
Trends
Daily SMA20 1507.97
Daily SMA50 1486.06
Daily SMA100 1495.23
Daily SMA200 1428.35
 
Levels
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. 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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.1900, retains weekly gains

The EUR/USD pair trades around the 1.19 mark after the Eurozone Q2 Prelim GDP beat estimates with 2% while US PCE inflation rose by less than anticipated in June, printing at 3.5% YoY. Risk-on mood persists.

EUR/USD News

GBP/USD retreats after flirting with 1.4000

GBP/USD retreated from near the 1.4000 level, but the greenback remains away from investors' radar. Optimism over the Brexit issue and the declining trend in new COVID-19 cases in the UK offers support to the pound.

GBP/USD News

XAU/USD slides to $1,820 area, downside seems limited

Gold traded with a mild negative bias around the $1,825 region, or daily lows, during the early North American session, albeit lacked any follow-through selling.

Gold News

Shiba gets listed on eToro as demand for SHIB skyrockets

Leading investment platform eToro has been adding cryptocurrency assets on popular demand from users. The Dogecoin killer recently amassed 600,000 holders despite range-bound price action. 

Read more

NIO shares rise again as Wall Street shrugs off recent China woes

NYSE:NIO added 1.86% as EV and China stocks bounced back again. Nio rides higher as industry leader Tesla gets some major upgrades. Nio rival XPeng releases a refreshed look for its compact SUV.

Read more

Forex MAJORS

Cryptocurrencies

Signatures