Gold falls to one-week lows, around $1485 region


  • Intraday pickup in the USD demand prompted some fresh selling.
  • Softer mood/sliding US bond yields helped limit any deeper losses.

Gold failed to capitalize on the early uptick to $1495 area and turned lower for the second consecutive session, dropping to over one-week low in the last hour.
 
Against the backdrop of growing optimism over a partial US-China trade deal, a modest US Dollar uptick since the early European session turned out to be one of the key factors that exerted some fresh downward pressure on the dollar-denominated commodity.

Focus remains on the Fed

Apart from the USD strength, possibilities of some short-term trading stops being triggered below the overnight swing lows, around the $1490 region, further collaborated towards aggravating the intraday bearish pressure, though a combination of factors helped limit the downside.
 
A slightly softer tilt in the risk mood around equity markets underpinned the precious metal's perceived safe-haven demand. This coupled with Fed rate cut expectations and a sharp intraday slide in the US Treasury bond yields further extended some support to the non-yielding yellow metal.
 
Hence, it will be prudent to wait for some strong follow-through selling before confirming any further downside as investors start repositioning for the upcoming key event risk – the highly anticipated FOMC monetary policy decision on Wednesday.
 
Heading into the key event risk, Tuesday US economic docket – featuring the release of the Conference Board's Consumer Confidence Index and pending home sales data – might be looked upon for some short-term trading opportunities during the early North-American session.

Technical levels to watch

XAU/USD

Overview
Today last price 1487.37
Today Daily Change -5.13
Today Daily Change % -0.34
Today daily open 1492.5
 
Trends
Daily SMA20 1494.39
Daily SMA50 1504.94
Daily SMA100 1464.43
Daily SMA200 1381.75
 
Levels
Previous Daily High 1508.23
Previous Daily Low 1490.1
Previous Weekly High 1517.92
Previous Weekly Low 1481.05
Previous Monthly High 1557.03
Previous Monthly Low 1464.61
Daily Fibonacci 38.2% 1497.03
Daily Fibonacci 61.8% 1501.3
Daily Pivot Point S1 1485.66
Daily Pivot Point S2 1478.81
Daily Pivot Point S3 1467.53
Daily Pivot Point R1 1503.79
Daily Pivot Point R2 1515.07
Daily Pivot Point R3 1521.92

 

 

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