Gold extends recovery from 5-week lows, jumps closer to weekly tops

Haresh Menghani FXStreet

Gold built on previous session's recovery move from 5-week lows and jumped back above $1250 level, closer to weekly highs.

The ongoing slump in oil prices pushed down the US equity markets and was seen extending support to the precious metal's safe-haven appeal.

• Oil: Prices under the pump - ANZ

Moreover, continuous slide in oil prices also fueled concerns over slowing inflationary pressure, which now seems to have raised doubts over the prospects for a third Fed rate hike this year. The same is evident from flattening of the US Treasury yield curve, which is eventually benefitting the non-yielding metal.

Adding to this, a softer tone around the greenback, with the key US Dollar Index easing from one-month highs, provided an additional boost to the yellow metal's strong recovery move back closer to weekly tops near $1255 region.

Later during the NA session, the release of usual weekly jobless claims from the US would influence sentiment surrounding the greenback and provide some trading impetus for the dollar-denominated commodity.

Technical levels to watch

A strong follow through buying interest should continue to boost the metal towards $1260 resistance area, above which a fresh bout of short-covering has the potential to lift it further towards $1266-67 horizontal resistance.

On the flip side, retracement back below $1250 level now seems to find support near $1246 level, which if broken would expose the very important 200-day SMA support near $1237 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD flies to two-week highs, targets 1.3400

GBP/USD trades well above the 1.3300 barrier on Thursday as the Greenback comes under renewed selling pressure following a softer-than-expected US NFP report in June. Meanwhile, Cable extends its multi-day recovery and looks to challenge 1.3400 sooner rather than later.

EUR/USD: Signs of life emerge above 1.1400

EUR/USD leaves behind two daily pullbacks in a row and advances to multi-day peaks near 1.1470 on Thursday, partially offsetting the sharp decline in place since June. The pair’s decline follows the intense retracement in the US Dollar, which is particularly sponsored by disheartening prints from June’s Payrolls and the sharp sell-off in USD/JPY. The US markets will be closed on Friday due to the Independence Day holiday.

Gold hits six-day tops past $4,100

Gold extends its bullish momentum on Thursday, climbing above the $4,100 mark per troy ounce to reach its highest level in a week. The precious metal’s sharp rebound comes as the US Dollar retreats following disappointing US NFP data.

Strategy's STRC volatility points to late Bitcoin cycle reset — Bitwise

The recent volatility surrounding Strategy's perpetual preferred stock, STRC, could signal that Bitcoin (BTC) is approaching a cycle bottom, according to Bitwise CIO Matt Hougan. In a Wednesday report, Hougan argued that the sharp decline in STRC and Strategy's MSTR stock should be viewed as "classic end-of-cycle dynamics" rather than evidence of a broader structural threat to Bitcoin.

The market may no longer be giving the Magnificent Seven a free pass

For much of the past three years, investing has felt surprisingly simple. Whenever markets stumbled, investors knew where to look. Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta and Tesla repeatedly led Wall Street higher, shrugging off inflation fears, higher interest rates and geopolitical shocks.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.