Gold drops to session lows, retreats further below $1300 mark

Haresh Menghani FXStreet

• Improving risk sentiment dents safe-haven demand and prompts some selling.
• Recovering US bond yields/USD adds to the selling bias/ latest leg of the slide.

Gold failed to capitalize on the early European session uptick to the $1300 neighborhood and has now dropped to the lower end of its daily trading range.

A slight improvement in the global risk sentiment, as depicted by a sudden turnaround in the European equity markets dented the precious metal's relative safe-haven status and turned out to be one of the key factors behind the intraday slide.

A goodish pickup in the US Treasury bond yields, with the yield on the benchmark 10-year government bond yield recovering over 1% intraday, reinforced the risk-on mood and was also seen driving flows away from the non-yielding yellow metal.

Adding to this, the US Dollar has managed to reverse an early dip and is now looking to build on the intraday positive move, which further undermined demand for the dollar-denominated commodity and collaborated to the latest leg of a slide.

The downside, however, remained cushioned as investors still seemed reluctant to place any aggressive bearish bets/unwinding near-term bullish positions amid the recent escalation in the US-China trade tensions and worries about slowing global economic growth.

Technical levels to watch

XAU/USD

Overview
Today last price	1294.2
Today Daily Change	-3.37
Today Daily Change %	-0.26
Today daily open	1297.57

Trends
Daily SMA20	1281.96
Daily SMA50	1291.86
Daily SMA100	1296.69
Daily SMA200	1257

Levels
Previous Daily High	1300.92
Previous Daily Low	1293.1
Previous Weekly High	1291.45
Previous Weekly Low	1275.1
Previous Monthly High	1310.7
Previous Monthly Low	1265.6
Daily Fibonacci 38.2%	1296.09
Daily Fibonacci 61.8%	1297.94
Daily Pivot Point S1	1293.47
Daily Pivot Point S2	1289.37
Daily Pivot Point S3	1285.65
Daily Pivot Point R1	1301.3
Daily Pivot Point R2	1305.02
Daily Pivot Point R3	1309.12

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD corrects lower, returns to 1.1650

EUR/USD could not sustain an earlier move to fresh tops just above 1.1680 on Thursday, coming under fresh selling pressure and revisiting the mid-1.1600s in the latter part of the NA session. The pair’s correction comes in response to an acceptable bounce in the US Dollar.

GBP/USD attempts some consolidation near 1.3350

GBP/USD is alternating gains with losses near 1.3350 on Thursday. The Greenback’s attempts to recover aren't really sticking, upbeat data or not, as traders stay confident that the Fed will deliver a 25 bps rate cut at its final meeting of the year.

Gold flat lines near $4,200 ahead of US PCE inflation release

Gold price (XAU/USD) trades on a flat note near $4,205 during the early Asian trading hours on Friday. Rising US Treasury yields and upbeat US jobs data cap upside for the precious metal. Traders might prefer to wait on the sidelines ahead of the key US inflation data. The US delayed the Personal Consumption Expenditures Price Index report for September, which will be published later on Friday.

XRP slides amid record on-chain activity, mixed technical signals

Ripple (XRP) is trading under pressure at the time of writing on Thursday, after bulls failed to break the short-term resistance at $2.22. The reversal may extend toward Monday’s low of $1.98, especially if risk-off sentiment persists in the broader cryptocurrency market.

Why the Fed may cut rates in December: Understanding the policy shift

The Fed has gone through a noticeable policy swing in recent months - from initiating a rate cut, to signaling a potential pause, and now shifting once again toward another cut in December. This has created understandable confusion among traders and investors trying to interpret the Fed’s reaction function.

XRP edges lower despite record on-chain activity and steady ETF inflows

Ripple is trading under pressure at the time of writing on Thursday, after bulls failed to break the short-term resistance at $2.22. The reversal may extend toward Monday’s low of $1.98, especially if risk-off sentiment persists in the broader cryptocurrency market.