|

Gold falls to session low, bears eyeing a break below $1300 mark

   •  A goodish bounce in the US bond yields prompts some fresh selling on Thursday.
   •  Reviving USD demand adds to the weakness; cautious mood fails to lend any support.

Gold extended its steady intraday decline and is currently placed at session lows, with bears now eyeing a follow-through weakness below the key $1300 psychological mark.

The precious metal failed to capitalize on the recent positive momentum and erased the previous session's goodish up-move to 1-1/2 week tops, shrugging of weaker-than-expected Chinese industrial production data and the prevalent cautious mood. 

Data released on Thursday showed China’s industrial output grew at the slowest pace in 17 years for the first two months in 2019 and dented investors' appetite for riskier assets, though did little to boost the commodity's relative safe-haven status.

A goodish pickup in the US Treasury bond yields turned out to be one of the key factors prompting some fresh selling around the non-yielding yellow metal. This coupled with a modest US Dollar demand exerted additional downward pressure on the dollar-denominated commodity.

Moving ahead, there aren't any major market moving US economic data due for released on Thursday and hence, the US bond yields/USD price dynamics might continue to play an important role in influencing the commodity's intraday momentum.

Technical levels to watch

On a sustained weakness below the $1300 mark, the commodity is likely to accelerate the slide towards $1294 horizontal support before eventually falling to $1290 level en-route $1287-86 support zone. On the flip side, the $1308-09 region now seems to have emerged as an immediate resistance, which if cleared could lift the metal further towards its next hurdle near the $1314-15 supply zone.
 

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

More from Haresh Menghani
Share:

Editor's Picks

GBP/USD bounces off four-day lows, still below 1.3500

GBP/USD sticks to the bearish tone on Thursday, coming down to the 1.3480 region in the latter part of the NA session. In the meantime, Cable’s weakness comes as investors continue to assess mixed UK data, poor US results, and the persistent uncertainty surrounding the US-Iran conflict.

EUR/USD clings to gains near 1.1530

EUR/USD advances marginally, girating around the low-1.1500s on Thursday. Persistent uncertainty in the Middle East fuels risk aversion, limiting the US Dollar’s downside potential. Earlier in the day, both US Producer Prices and weekly Claims missed market consensus, adding to the buck’s soft tone.

Gold loses the grip, recedes toward $4,350

Gold extends its intraday pullback on Thursday, retesting the $4,350 zone per troy ounce, or three-day troughs. Meanwhile, the yellow metal continues to monitor developments from the Middle East as well as bets surrounding the potential Fed’s rate path.

Crypto Today: Bitcoin, Ethereum, XRP remain sluggish amid mixed ETF flows

The cryptocurrency market continues to trade sideways on Thursday, with Bitcoin struggling to reclaim the $64,000 level. Ethereum is attempting to build momentum near the key $1,900 resistance, while Ripple maintains support above $1.00, yet upward movement remains limited.

Week ahead – Summer lull could be tested by geopolitics and central bank expectations

US dollar stabilizes as September Fed hike bets remain subdued. Market volatility stays low, but thin liquidity could amplify movements. Key UK data could challenge pound strength; euro craves bullish catalysts.

Why is Crude Oil priced for a reopening the ships haven't made?
Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.