- Fed opened doors for a rate cut later this year and triggers some aggressive buying.
- Tumbling US bond yields/prevalent USD bearish pressure remained supportive.
- Bullish equities seemed to be the only factor capping gains amid overbought conditions.
Gold built on the post-FOMC upsurge and rallied to near six-year tops during the Asian session on Thursday, albeit retreated a bit thereafter.
The Fed on Wednesday left key interest rates unchanged but kept the door open for an interest rate cut by the end of this year. The US 10-year Treasury bond yield dropped below the 2.0% mark in reaction to dovish FOMC commentary and benefitted the non-yielding yellow metal.
Meanwhile, the latest leg of a free fall in the US Treasury bond yields triggered some aggressive US Dollar selling pressure and provided an additional boost to the dollar-denominated commodity and collaborated to the ongoing strong positive momentum to the highest level since September 2013.
Adding to this, possibilities of some aggressive stops being triggered on a sustained move beyond last week's swing high, around the $1358 region, further aggravated the move during the Asian session on Thursday and lifted the commodity closer to the key $1400 psychological mark.
However, the prevailing risk-on mood, as depicted by bullish trading sentiment across European bourses and indications of a strong opening in the US equity markets, weighed on the precious metal's relative safe-haven status and seemed to be the only factor capping gains.
It would now be interesting to see if the commodity is able to attract some fresh dip-buying interest or traders opt to take some profits off the table amid near-term overbought conditions and renewed optimism over a possible resolution to the prolonged US-China trade disputes.
Technical levels to watch
|Today last price||1379.9|
|Today Daily Change||19.50|
|Today Daily Change %||1.43|
|Today daily open||1360.4|
|Previous Daily High||1362.5|
|Previous Daily Low||1341.56|
|Previous Weekly High||1358.2|
|Previous Weekly Low||1319.99|
|Previous Monthly High||1306.9|
|Previous Monthly Low||1266.35|
|Daily Fibonacci 38.2%||1354.5|
|Daily Fibonacci 61.8%||1349.56|
|Daily Pivot Point S1||1347.14|
|Daily Pivot Point S2||1333.87|
|Daily Pivot Point S3||1326.19|
|Daily Pivot Point R1||1368.08|
|Daily Pivot Point R2||1375.76|
|Daily Pivot Point R3||1389.03|
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