Gold eases from two-week tops, still well bid above $1960 level

  • Gold gained some follow-through traction for the second straight session on Tuesday.
  • The uptick was well supported by the heavily offered tone surrounding the greenback.
  • The prevalent risk-on environment might cap gains ahead of the FOMC on Wednesday.

Gold climbed to two-week tops, around the $1969 region during the early European session, albeit lacked any strong follow-through and quickly retreated around $8-10 thereafter.

The precious metal built on the previous day's positive move and gained some follow-through traction for the second consecutive session on Tuesday. The heavily offered tone surrounding the US dollar was seen as a key factor that benefitted the dollar-denominated commodity.

However, the prevalent risk-on environment undermined the metal's safe-haven demand. The latest optimism over a potential COVID-19 vaccine remained supportive of the upbeat market mood, which got an additional boost from Tuesday's better-than-expected Chinese macro data.

Apart from this, a modest pickup in the US Treasury bond yields further collaborated towards capping any strong gains for the non-yielding yellow metal. Investors also seemed reluctant to place aggressive bets ahead of the FOMC monetary policy decision on Wednesday.

This makes it prudent to wait for some strong follow-through buying beyond the $1670-72 supply zone before traders start positioning for a further near-term appreciating move.

In the meantime, market participants will look forward to the US economic releases – the Empire State Manufacturing Index and Industrial Production – for some impetus. Heading into Wednesday's key event risk, the data is unlikely to be a major game-changer for the commodity.

Technical levels to watch


Today last price 1961.14
Today Daily Change 4.34
Today Daily Change % 0.22
Today daily open 1956.8
Daily SMA20 1945.93
Daily SMA50 1923.08
Daily SMA100 1826.49
Daily SMA200 1705.03
Previous Daily High 1962.6
Previous Daily Low 1937.1
Previous Weekly High 1966.54
Previous Weekly Low 1906.62
Previous Monthly High 2075.32
Previous Monthly Low 1863.24
Daily Fibonacci 38.2% 1952.86
Daily Fibonacci 61.8% 1946.84
Daily Pivot Point S1 1941.73
Daily Pivot Point S2 1926.67
Daily Pivot Point S3 1916.23
Daily Pivot Point R1 1967.23
Daily Pivot Point R2 1977.67
Daily Pivot Point R3 1992.73



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