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 edges lower below 1.1650 as Middle East tensions fuel US Dollar strength

The EUR/USD pair trades in negative territory around 1.1635 during the early Asian session on Thursday. The US Dollar strengthens against the Euro as escalating Middle East conflict boosts safe-haven flows. Traders brace for the Eurozone Retail Sales and US weekly Initial Jobless Claims reports, which will be released later on Thursday.

GBP/USD tests key moving averages as growth downgrade weighs

GBP/USD was nearly flat on Wednesday, edging up 0.08% to settle around 1.3370 in a quiet session. The pair has fallen sharply from its late-January high near 1.3870 and is now testing the 200-day Exponential Moving Average, with this week's one-week forex heatmap showing Pound Sterling as one of the worst performers against the US Dollar, down about 1.4% on the week.

Gold re-attempts $5,200 amid a softer USD; reduced Fed rate cut bets cap gains

Gold bounces toward $5,200 for the second consecutive day on Thursday amid a modest US Dollar weakness. Wednesday's upbeat US macro data further tempered hopes for three rate cuts by the Fed in 2026. Furthermore, escalating Middle East tensions might continue to benefit the USD's status as the global reserve currency and contribute to capping the bullion.