Gold falls to 1-1/2 week lows, 100-DMA support around $1220 level


   •  Resurgent USD demand/positive US bond yields prompted fresh selling.
   •  Signs of stability in equity markets further undermine safe-haven demand.
   •  Traders now eye US consumer confidence index for short-term impetus.

Gold kept losing ground through the mid-European session and fell to 1-1/2 week lows in the last hour.

The commodity extended Friday's retracement slide from fresh three-month tops and remained under some selling pressure for the second consecutive session on Tuesday. 

A goodish pickup in the greenback demand, with the key US Dollar Index hitting over 2-1/2 month tops, was seen as one of the key factors undermining demand for the dollar-denominated commodity.

Adding to this, a modest uptick in the US Treasury bond yields exerted some additional downward pressure on the non-yielding yellow-metal and further collaborated to the ongoing downfall. 

Meanwhile, investors looked past overnight report, which renewed worries about an escalation of the US-China trade war, and an effort by equities to stabilize also did little to support the precious metal's safe-haven status. 

Currently hovering around 100-day SMA support, around the $1220 region, market participants now look forward to the release of Conference Board's US consumer confidence index in order to grab some short-term opportunities during the early North-American session.

Technical levels to watch

A follow-through selling has the potential to continue dragging the commodity further towards $1215 intermediate support en-route the $1211-10 region. On the flip side, any attempted move back above $1226 area now seems to confront resistance near the $1232-34 region, above which the metal is likely to aim towards surpassing the $1240-41 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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD recaptures 1.10 as dollar suffers a fresh sell-off

EUR/USD is trading above 1.10, recapturing the level as the dollar retreats. After a three-day rally, stocks are cooling but the safe-haven dollar is still under pressure. Coronavirus headlines are eyed. 

EUR/USD News

GBP/USD extends rally above 1.23 amid USD weakness

GBP/USD is trading above 1.23, some 900 pips off the lows amid dollar weakness. UK coronavirus cases are rising at a growing pace and Brexit talks have been put on ice. 

GBP/USD News

Cryptocurrencies: Bulls honing their antlers for an upward attempt ahead

The sense of extreme fear is divergent with the levels of the mathematical averages. Bitcoin dominance ratio moves at a structural pivot level and can lead to a trend change. XRP is the winner of the day, but far away from fleeing out of the bearish scenario.

Read more

Gold trades with modest losses below $1620 level, downside seems limited

Gold edged lower through the early European session and is currently placed near the lower end of its daily trading range, just below $1620 level. Concerns over an imminent global recession might help limit losses.

Gold News

US Jobless Claims Analysis: 3 M is only the beginning, 3 reasons why USD may rise

Unemployment is engulfing the US – weekly jobless claims jumped to 3.283 million, an increase of 1,053%. The four-week moving average is near one million, also surpassing the worst since the Great Financial Crisis.

Read more

Forex MAJORS

Cryptocurrencies

Signatures