Gold eases from 1-week tops, still comfortable above $1500 mark


  • Positive trade headlines continue to weigh on the commodity’s safe-haven status.
  • A subdued USD price action seemed to be the only factor lending some support.
  • Thursday’s release of US CPI figures and US-China trade eyed for a fresh impetus.

Gold failed to capitalize on its early uptick to weekly tops and is currently placed at the lower end of its daily trading range, still holding comfortably above the key $1500 psychological mark.
 
Following the previous session's directionless trading action, the precious metal managed to regain some positive traction during the Asian session on Thursday in the wake of reviving safe-haven demand amid nervousness ahead of the resumption of the crucial high-level US-China trade talks.

Renewed trade optimism capping gains

The uptick, however, lacked any strong follow-through and remained capped below last week's swing highs on the back of incoming positive trade-related headlines, which remained supportive of the risk-on flows and dented demand for traditional safe-haven assets – including Gold.
 
The global risk sentiment got a strong boost on Wednesday after Bloomberg reported that China was still open to a partial trade deal with the US. This was followed by reports on Thursday that the US is considering entering into a currency agreement with China as a part of a partial trade deal.
 
Meanwhile, a mildly weaker tone surrounding the US Dollar helped limit the downside. Despite Wednesday's not so dovish FOMC minutes and a goodish pickup in the US Treasury bond yields, the Greenback remained on the defensive and underpinned demand for the dollar-denominated commodity - Gold.
 
It will now be interesting to see if the commodity is able to find any meaningful traction as market participants now look forward to Thursday's important release of the latest US consumer inflation figures. This along with trade-related developments might play a key role in determining the next leg of a directional move.

Technical levels to watch

XAU/USD

Overview
Today last price 1508.5
Today Daily Change 2.90
Today Daily Change % 0.19
Today daily open 1505.6
 
Trends
Daily SMA20 1501.16
Daily SMA50 1504.75
Daily SMA100 1440.37
Daily SMA200 1368.54
 
Levels
Previous Daily High 1511.4
Previous Daily Low 1500.1
Previous Weekly High 1519.04
Previous Weekly Low 1455.5
Previous Monthly High 1557.03
Previous Monthly Low 1464.61
Daily Fibonacci 38.2% 1504.42
Daily Fibonacci 61.8% 1507.08
Daily Pivot Point S1 1500
Daily Pivot Point S2 1494.4
Daily Pivot Point S3 1488.7
Daily Pivot Point R1 1511.3
Daily Pivot Point R2 1517
Daily Pivot Point R3 1522.6

 

 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD: Bulls need an upbeat German IFO Expectations figure

EUR/USD dips as lingering US-China tensions bode well for the US dollar. Technical indicators suggest scope for a re-test of the lower end of the multi-week trading range. Deeper losses may remain elusive if the German IFO numbers beat estimates. 

EUR/USD News

GBP/USD retraces three-day losses below 1.2200 on UK/US holiday

GBP/USD sellers catch a breather amid a lack of major catalysts on Spring Bank Holiday. UK PM Johnson gets criticized while favoring Adviser Dominic Cummings. US-China tussle intensifies with eyes on US President Trump’s reaction over the Hong Kong issue.

GBP/USD News

Forex Today: Dollar in demand amid high Sino-American tensions, thin liquidity expected

The new week has kicked off with dollar strength as the US and China have kept tensions high. Thin liquidity and potential erratic movements may occur as the United States and United Kingdom are on holiday.

Read more

Gold down by $6 in Asia, weekly chart shows bullish trend exhaustion

Gold, a safe-haven asset, is flashing red at press time even though the growth-linked currencies like the Aussie dollar are struggling to gain altitude. Technical charts indicate scope for deeper declines in the short-term.

Gold News

USD/JPY keeps mild gains above previous resistance line, 200-HMA

USD/JPY bounces off an immediate support line to print a three-day winning streak. Thursday’s high appears on the bulls’ radar as immediate resistance. 107.00 could lure the bears below 200-HMA.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures