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.

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