- Improving risk sentiment dents the commodity’s safe-haven status.
- A goodish bounce in the US bond yields/USD adds to the selling bias.
Gold remained under some heavy selling pressure through the early European session and dropped to multi-day lows, around the $1325 region in the last hour.
The precious metal failed to capitalize on last week's strong up-move, further boosted by Friday's weaker US monthly jobs report, and opened with a bearish gap at the start of a new trading week.
Encouraging trade-related development, wherein the US President Donald Trump suspended plans to impose tariffs on Mexico, boosted the global risk sentiment and undermined the precious metal's safe-haven demand.
The risk-on mood was evident from a goodish rebound in the US Treasury bond yields, which helped ease the recent US Dollar bearish pressure and further drove flows away from the dollar-denominated commodity.
With today's steep decline, the metal has now erased gains recorded in the previous four trading session, though has still managed to hold its neck above the key $1300 psychological mark amid increasing Fed rate cut bets.
Hence, it would be prudent to wait for a strong follow-through selling before confirming that the non-yielding yellow metal might have actually topped out in the near-term or positioning for any further depreciating move.
Technical levels to watch
|Today last price||1327.03|
|Today Daily Change||-13.48|
|Today Daily Change %||-1.01|
|Today daily open||1340.51|
|Previous Daily High||1348.12|
|Previous Daily Low||1330.4|
|Previous Weekly High||1348.12|
|Previous Weekly Low||1306.18|
|Previous Monthly High||1306.9|
|Previous Monthly Low||1266.35|
|Daily Fibonacci 38.2%||1341.35|
|Daily Fibonacci 61.8%||1337.17|
|Daily Pivot Point S1||1331.24|
|Daily Pivot Point S2||1321.96|
|Daily Pivot Point S3||1313.52|
|Daily Pivot Point R1||1348.95|
|Daily Pivot Point R2||1357.39|
|Daily Pivot Point R3||1366.67|
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