Gold fades a bullish spike to fresh weekly tops, slides below $1725 level

Gold retreats from weekly tops despite weaker risk sentiment, sliding US bond yields.
A modest USD rebound exerted some pressure on the dollar-denominated commodity.
Bears need to wait for a break below an ascending trend-line before placing fresh bets.

Haresh Menghani FXStreet

Gold struggled to capitalize on its intraday uptick to weekly tops and dropped to fresh session lows, below the $1725 level in the last hour.

A combination of supporting factors assisted the commodity to break through its daily consolidative trading range and build on the previous day's rebound from the $1712-13 region. Concerns about a surge in new coronavirus cases, coupled with geopolitical tensions in Asia continued weighing on investors' sentiment.

The cautious mood was evident from a weaker trading sentiment around the equity markets and benefitted the precious metal's safe-haven status. The anti-risk flow was reinforced by sliding US Treasury bond yields, which provided an additional boost to the non-yielding yellow metal and lifted it beyond the $1730 hurdle.

The uptick, however, lacked any strong follow-through, rather quickly lost steam ahead of the $1740 supply zone. A modest US dollar rebound from daily lows turned out to be one of the key factors that seemed to exert some pressure on the dollar-denominated commodity, though the downside seems limited, at least for now.

The commodity has managed to hold above a short-term ascending trend-line extending from monthly lows. This makes it prudent to wait for a sustained breakthrough the mentioned support, around the $1718-17 region, before positioning for any further near-term depreciating move.

Technical levels to watch

XAU/USD

Overview
Today last price	1724.06
Today Daily Change	-2.96
Today Daily Change %	-0.17
Today daily open	1727.02

Trends
Daily SMA20	1720.62
Daily SMA50	1714.11
Daily SMA100	1655.07
Daily SMA200	1577.73

Levels
Previous Daily High	1730.32
Previous Daily Low	1712.76
Previous Weekly High	1744.75
Previous Weekly Low	1677.73
Previous Monthly High	1765.38
Previous Monthly Low	1670.72
Daily Fibonacci 38.2%	1719.47
Daily Fibonacci 61.8%	1723.61
Daily Pivot Point S1	1716.41
Daily Pivot Point S2	1705.81
Daily Pivot Point S3	1698.85
Daily Pivot Point R1	1733.97
Daily Pivot Point R2	1740.93
Daily Pivot Point R3	1751.53

Author

Haresh Menghani

FXStreet

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

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.