Gold drops to session low, reverses Friday's positive move


  • Upbeat Chinese manufacturing PMI prompted some fresh selling on Monday.
  • A strong upsurge in the US bond yields further collaborated to the selling bias.
  • A subdued USD demand does little to lend any support or stall the ongoing slide.

Gold extended its steady intraday decline through the early European session on Monday and is currently placed near the lower end of its daily trading range, around the $1455 region.

A combination of negative forces failed to assist the precious metal in building on the previous session's goodish positive mood to one-week tops, rather prompted some fresh selling on the first day of a new trading week.

Stronger Chinese data, surging US bond yields weigh

Positive economic data from China, showing an unexpected growth in the manufacturing activity in November, boosted the global risk sentiment and dented demand for the precious metal's perceived safe-haven status.

In fact, the official data released over the weekend showed that China's manufacturing PMI moved in the expansion territory for the first time since April and came in at 50.2 for November, up from 49.3 previous.

Adding to this, China’s Caixin/Market PMI also bettered market expectations and edged higher to 51.8 from 51.7 reported last month and also played its part in weighing gold prices on the first day of a new week.

The risk-on mood was reinforced by some strong follow-through upsurge in the US Treasury bond yields, now up over 4% for the day, which further collaborated towards driving flows away from the non-yielding yellow metal.

Meanwhile, persistent uncertainty over the "phase one" US-China trade deal, especially after the US President Donald Trump showed his support for Hong Kong demonstrators last week, did little to lend any support.

Even a subdued US dollar demand also failed to ease the prevalent bearish pressure surrounding the dollar-denominated commodity or stall the ongoing downfall back closer to last week's swing low, at least for now.

Moving ahead, Monday's US economic docket – highlighting the release of ISM Manufacturing PMI – will now be looked upon for some fresh trading impetus later during the early North-American session.

Technical levels to watch

XAU/USD

Overview
Today last price 1454.74
Today Daily Change -9.20
Today Daily Change % -0.63
Today daily open 1463.94
 
Trends
Daily SMA20 1468.19
Daily SMA50 1485.89
Daily SMA100 1484.97
Daily SMA200 1401.35
 
Levels
Previous Daily High 1466.62
Previous Daily Low 1453.1
Previous Weekly High 1466.62
Previous Weekly Low 1450.74
Previous Monthly High 1515.38
Previous Monthly Low 1445.8
Daily Fibonacci 38.2% 1461.45
Daily Fibonacci 61.8% 1458.26
Daily Pivot Point S1 1455.82
Daily Pivot Point S2 1447.7
Daily Pivot Point S3 1442.3
Daily Pivot Point R1 1469.33
Daily Pivot Point R2 1474.73
Daily Pivot Point R3 1482.85

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD stays below 1.3350 on poor UK PMIs

GBP/USD hits fresh session lows of 1.3335 following an unexpected drop in the UK's Preliminary Manufacturing and Service PMI reports. However, the downside appears capped amid growing Brexit optimism. 

GBP/USD News

EUR/USD keeps range around 1.1130 on downbeat PMIs

EUR/USD trims gains to trade near 1.1130 region after the sentiment around the euro was dented by the disappointing German and Eurozone Preliminary Manufacturing PMIs. Trade concerns also keep the gains limited. 

EUR/USD News

The phantom of fear pierces crypto market foundations

Negative technical indicators are extremely volatile and are approaching a technical rebound. Ethereum has fundamentals in play versus Bitcoin which could be lethal. XRP is not immune to downfalls and adds to the dangerous game of critical supports.

Read more

Gold consolidates in a range, flat-lined around $1475 level

Gold extended its sideways consolidative price action through the early European session on Monday and remained confined in a narrow trading band near the $1475 region.

Gold News

USD/JPY trades below 109.50 ahead of US PMI data

The USD/JPY pair edged higher on the first day of a new trading week, albeit lacked any strong follow-through and remained well within the previous session's trading range.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures