Gold drops to multi-day lows, around $1325 level


  • 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

XAU/USD

Overview
Today last price 1327.03
Today Daily Change -13.48
Today Daily Change % -1.01
Today daily open 1340.51
 
Trends
Daily SMA20 1297.33
Daily SMA50 1289.67
Daily SMA100 1298.61
Daily SMA200 1265.43
Levels
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

 

 

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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD rises above 1.0900 as USD selloff picks up steam

EUR/USD rises above 1.0900 as USD selloff picks up steam

EUR/USD extends its weekly rally and trades above 1.0900 in the American session on Friday. Following a modest recovery attempt seen after strong producer inflation data from the US, the USD stays under bearish pressure as risk flows dominate the markets.

EUR/USD News

GBP/USD extends rally toward 1.3000 on broad USD weakness

GBP/USD extends rally toward 1.3000 on broad USD weakness

GBP/USD preserves its bullish momentum and rises toward 1.3000, trading at its strongest level in nearly a year. The improving risk mood doesn't allow the US Dollar to find demand following Thursday's CPI-inspired selloff and provides a boost to the pair.

GBP/USD News

Gold remains on track to end week above $2,400

Gold remains on track to end week above $2,400

Following a short-lasting downward correction in the early American session, Gold regains its traction and looks to end the week above $2,400. The persistent selling pressure surrounding the US Dollar heading into the weekend helps XAU/USD hold its ground.

Gold News

Worldcoin crumbles under selling pressure even as OpenAI eyes human-level problem-solving

Worldcoin crumbles under selling pressure even as OpenAI eyes human-level problem-solving

OpenAI, the American tech firm behind the Large Language Model ChatGPT, announced five levels towards building an Artificial General Intelligence. Employees at the firm told Bloomberg that with ChatGPT, Open AI is currently at level one. 

Read more

Week ahead – ECB set to hold rates, plethora of data on the way

Week ahead – ECB set to hold rates, plethora of data on the way

ECB is not expected to cut in July but will it signal one for next meeting? Retail sales will be the main highlight in the United States. UK CPI report will be vital for BoE’s August decision.

Read more

Forex MAJORS

Cryptocurrencies

Signatures