• Reviving USD demand prompts some fresh selling.
• Risk-on mood adds to the downward pressure.
• On track for its third weekly decline in the previous four.
Gold came under some renewed selling pressure on Friday and has now eroded a major part of previous session's goodish recovery move from over one week tops.
A fresh wave of US Dollar selling pressure on Thursday, triggered by sliding US Treasury bond yields, extended some support and helped the precious metal to register a goodish rebound from over one-week lows.
The USD demand, however, revived strongly on Friday and prompted some fresh selling around dollar-denominated commodities - like gold. Adding to this, improving risk appetite, as depicted by positive trading sentiment around equity markets, further dented the precious metal's safe-haven demand and collaborated to the offered tone.
Later in the day, traders would now take cues from Fedspeak, which might influence Fed rate hike expectations and eventually provide some fresh impetus for the non-yielding yellow metal. In absence of any major market moving US economic data, the commodity remains on track for yet another weekly decline, marking it's third in the previous four.
Technical levels to watch
Immediate support is pegged near $1323 area, below which the commodity now seems to break below $1320 level and head towards its next support near the $1310-07 region. On the upside, $1332 level now seems to have emerged as immediate resistance, which if cleared could trigger a short-covering bounce towards $1338 hurdle en-route $1344-45 supply zone.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remains under pressure above 0.6400
AUD/USD managed to regain some composure and rebounded markedly from Tuesday’s YTD lows in the sub-0.6400 region ahead of the release of the Australian labour market report on Thursday.
EUR/USD faces decent contention around 1.0600
The knee-jerk in the Greenback reignited some buying interest in the risk complex and pushed EUR/USD to three-day highs near 1.0680, rapidly leaving behind the recent yearly low around 1.0600.
Gold eases despite risk-off mood
Gold trades in a relatively tight range near $2,390 in the second half of the day on Wednesday. In the absence of high-tier data releases, investors keep a close eye on headlines surrounding the Iran-Israel conflict.
Ethereum trades around the $3,000 support following a surge in validator queue
Ethereum (ETH) continued a sideways movement on Wednesday as investors seemed to be waiting for an upward or downward price catalyst. Despite the price stagnancy, the ETH validator queue - possibly fueled by the DeFi restaking boom - rose sharply.
Markets stabilize after Powell rules out rate hike, but the signs don’t look good
Markets are volatile right now; however, a relative calm has descended on the market and US. US stocks are down a touch, but the Vix is lower, US Treasury yields are lower, and the dollar is mostly lower vs. its G10 FX counterparts.