Gold falls to $1305, fresh session lows amid stronger USD/fading safe-haven demand

   •  The continuation of the recent USD rally to six-week tops prompts some fresh selling.
   •  Risk-on mood/a goodish pickup in the US bond yields add to the prevalent selling bias.

Gold kept losing ground through the early North-American session and is currently placed at the lower end of its daily trading range, below $1305 level.

A combination of negative forces prompted some fresh selling on the first trading day of a new week, with the precious metal snapping two consecutive days of winning streak and erasing last week's late recovery gains from over one-week lows. 

The US Dollar added to last week's strong rally of over 1.0% and climbed to near six-week tops on Monday, which eventually seen as one of the key factors exerting some fresh downward pressure on the dollar-denominated commodity.

Meanwhile, improving risk sentiment, further boosted by White House advisor Kellyanne Conway's latest optimistic comments that the US and China are getting closer to deal, dampened the precious metal's perceived safe-haven status and contributed to the offered tone. 

The risk-on mood was evident from a goodish pickup in the US Treasury bond yields, which further collaborated towards driving flows away from the non-yielding yellow metal and did little to stall the intraday slide to fresh session low in the last hour.

It would now be interesting to see if bears maintain their dominant position or the commodity is able to find any buying interest at lower levels ahead of a scheduled speech by the Fed Governor Michelle Bowman later during the US trading session.

Technical levels to watch


    Today Last Price: 1305.1
    Today Daily change %: -0.70%
    Today Daily Open: 1314.36
    Daily SMA20: 1300.04
    Daily SMA50: 1277.87
    Daily SMA100: 1249
    Daily SMA200: 1231.02
    Previous Daily High: 1315.7
    Previous Daily Low: 1300.1
    Previous Weekly High: 1322.3
    Previous Weekly Low: 1300.1
    Previous Monthly High: 1326.25
    Previous Monthly Low: 1275.9
    Daily Fibonacci 38.2%: 1309.74
    Daily Fibonacci 61.8%: 1306.06
    Daily Pivot Point S1: 1304.41
    Daily Pivot Point S2: 1294.46
    Daily Pivot Point S3: 1288.81
    Daily Pivot Point R1: 1320.01
    Daily Pivot Point R2: 1325.66
    Daily Pivot Point R3: 1335.61


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.

Feed news

Dollar under pressure ahead of FOMC, EUR/USD at weekly highs

The EUR/USD pair trades in the 1.1360 region, its highest for this week as the dollar is being dumped ahead of the release of FOMC Meeting's Minutes.


GBP/USD nearing 1.3100 on positive Brexit headlines

Spanish Foreign Minister Josep Borrell said that a Brexit accord was "being hammered out now," adding that it can be interpreted or complemented with explanations that may be satisfactory for the UK Parliament.