Gold eases from tops, still well bid around $1735 level


  • Gold caught some fresh bids on Friday amid a further escalation in the US-China tensions.
  • A goodish pickup in the USD demand turned out to be the only factor capping the upside.

Gold regained some positive traction on the last trading day of the week and recovered a part of the previous day's sharp fall to one-week lows. The commodity was last seen trading near the $1735 region, below daily swing highs, touched during the early European session.

Concerns over worsening US-China relations took its toll on the global risk sentiment and provided a goodish lift to the precious metal given its perceived safe-haven status. Diplomatic tensions between the world's two largest economies escalated further on reports that China is planning to impose national security laws in Hong Kong.

The US President Donald Trump was quick to respond and threatened a strong reaction if the law is passed. This comes on the back of the US Senate passing a bill that could block some Chinese companies from selling shares on the American stock exchanges and fueled concerns about a major US-China tussle.

Investors' nervousness was evident from a weaker tone surrounding the equity markets. The global flight to safety was reinforced by a fresh leg down in the US Treasury bond yields, which further benefitted the non-yielding yellow metal. Meanwhile, a broad-based greenback strength turned out to be the only factor that capped the dollar-denominated commodity.

From a technical perspective, the metal on Thursday showed some resilience below the $1720 horizontal resistance breakpoint. The subsequent positive move points to the emergence of some dip-buying at lower levels and supports prospects for additional gains. Hence, a climb back towards the $1750-52 region, en-route multi-year tops, now looks a distinct possibility.

Technical levels to watch

XAU/USD

Overview
Today last price 1734
Today Daily Change 6.29
Today Daily Change % 0.36
Today daily open 1727.71
 
Trends
Daily SMA20 1715.38
Daily SMA50 1660.28
Daily SMA100 1624.37
Daily SMA200 1558.64
 
Levels
Previous Daily High 1749.14
Previous Daily Low 1717.34
Previous Weekly High 1751.8
Previous Weekly Low 1690.05
Previous Monthly High 1747.82
Previous Monthly Low 1568.46
Daily Fibonacci 38.2% 1729.49
Daily Fibonacci 61.8% 1736.99
Daily Pivot Point S1 1713.65
Daily Pivot Point S2 1699.6
Daily Pivot Point S3 1681.85
Daily Pivot Point R1 1745.45
Daily Pivot Point R2 1763.2
Daily Pivot Point R3 1777.25

 

 

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