- Gold continues to be unable to benefit amid global trade war concerns.
- XAU/USD drops toward $1,240/oz, approaches last week lows.
A rally of the US dollar across the board sent gold prices to the downside. The ounce was moving sideways around $1,250/oz and broke lower during the US session. Price dropped to $1,242.50 reaching the lowest in a week.
As of writing, it was hovering slightly above the lows, under pressure with the greenback consolidating gains across the board. The US dollar strengthened on a risk-off environment, after US PPI data and ahead of the CPI reading on Thursday.
The rally of the dollar was the main driver of the XAU/USD decline. Gold is losing today 0.95%, about to post the third lowest close in a year.
Levels to watch
To the downside, immediate support is seen at $1,240 below that level attention would turn to $1,237 (YTD low) and under that area at $1,230. On the upside, resistance levels could be located at $1,246 (Jul 10 low), $1,253 and $1,260. A daily close on top of $1,260 is needed in order to remove the bearish pressure.
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
EUR/USD climbs to 1.0600 as US Dollar selloff picks up steam Premium
EUR/USD has gathered bullish momentum and climbed toward 1.0600 on Friday. Following the mixed December jobs report from the US, the disappointing ISM Services PMI survey triggered a US Dollar selloff, fueling the pair's daily rally.
GBP/USD advances above 1.2000 after weak US PMI data Premium
GBP/USD has extended its daily rally and advanced beyond 1.2000 on Friday. The US Dollar stays under heavy selling pressure after the data published by the ISM showed an unexpected contraction in the service sector's business activity in December.
Gold gathers bullish momentum, rises above $1,860
Gold price gathered bullish momentum and rose above $1,860 in the American session. After the ISM Services PMI came in much worse than expected, the benchmark 10-year US Treasury bond yield is down more than 3% on the day below 3.6%, providing a boost to XAU/USD.
Ethereum price may drop 12% before it reaches $1,300
Ethereum price has been performing far better in comparison to other altcoins despite correcting significantly during the FTX crash. The cryptocurrency is still maintaining its macro uptrend, which is crucial for ETH to recover its losses.
TSLA struggles as deliveries and Elon Musk scare investors
Tesla stock continues to suffer as delivery data plummets. TSLA also punished by Elon Musk distractions on Twitter. EV giant stock is oversold, buying the dip below $100 could be profitable.