Gold eases from 2-week tops, still well bid just below $1600 mark

  • Gold extended its positive momentum for the third consecutive session on Tuesday.
  • Broad-based USD weakness underpinned for the dollar-denominated commodity.
  • The risk-on mood, rebounding US bond yields kept a lid on any runaway rally.

Gold maintained its strong bid tone through the mid-European session, albeit has retreated around $30 from intraday swing highs to the $1615 region.

The precious metal built on its recent recovery move from the $1450 strong horizontal support, or YTD lows and gained some strong follow-through traction for the third consecutive session on Tuesday.

Some aggressive US dollar long-unwinding, triggered by the Fed's open-ended and unlimited QE, turned out to be one of the key factors that provided a strong lift to the dollar-denominated commodity.

This was followed by reports that the US Senate and the Trump administration were close to reaching a bipartisan agreement on the massive coronavirus spending package and boosted investors’ confidence.

This was evident from a strong recovery in the global risk sentiment and reinforced by solid gains in the equity markets, which dampened demand for traditional safe-haven assets and capped the upside.

Meanwhile, the risk-on mood allowed the US Treasury bond yields to rebound swiftly on Tuesday, which further collaborated towards keeping a lid on any runaway rally for the non-yielding yellow metal.

The commodity trimmed a part of its early gains to near two-week tops and now seems to have stabilized just below the $1600 round-figure mark ahead of the flash US Manufacturing and Services PMIs.

Technical levels to watch


Today last price 1597.52
Today Daily Change 44.74
Today Daily Change % 2.88
Today daily open 1552.78
Daily SMA20 1590.68
Daily SMA50 1582.94
Daily SMA100 1535.74
Daily SMA200 1504.26
Previous Daily High 1561.22
Previous Daily Low 1482.74
Previous Weekly High 1561
Previous Weekly Low 1451.3
Previous Monthly High 1689.4
Previous Monthly Low 1547.56
Daily Fibonacci 38.2% 1531.24
Daily Fibonacci 61.8% 1512.72
Daily Pivot Point S1 1503.27
Daily Pivot Point S2 1453.77
Daily Pivot Point S3 1424.79
Daily Pivot Point R1 1581.75
Daily Pivot Point R2 1610.73
Daily Pivot Point R3 1660.23



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