Gold flirting with session lows, around $1470 region


  • Gold failed to capitalize on the recent recovery move despite trade uncertainty.
  • Fed's patience stance seemed to be the only factor weighing on the commodity.
  • A subsequent slide, back towards the $1455 region, looks a distinct possibility.

Gold edged lower through the Asian session on Thursday and is currently placed near the lower end of its daily trading range, around the $1470 region.
 
The safe-haven precious metal witnessed some follow-through selling on Thursday and extended the previous session's late pullback from the vicinity of the 100-day SMA barrier, or near two-week tops, despite uncertainty over a phase one US-China trade deal.
 
The US President Donald Trump threatened to raise tariffs if phase one of a trade deal is not signed. Tensions between the two countries intensified further after the US Senate unanimously passed the Hong Kong Humans Right and Democracy Act bill on Tuesday.
 
Adding to this, reports on Wednesday suggested that the US and China may not reach a preliminary trade pact before next year, which shattered hopes of a partial agreement and weighed on the global risk sentiment – evident from weaker tone around equity markets.
 
Meanwhile, some renewed US dollar weakness also did little to lend any support to the dollar-denominated commodity. The fact that FOMC minutes on Wednesday indicated to keep policy on hold for a while seemed to be the only factor driving flows away from the non-yielding yellow metal.
 
From a technical perspective, the commodity's inability to capitalize on the recent recovery move from three-month tops and repeated failures near a previous strong support-turned-resistance suggests that the recent bearish pressure might still be far from being over.
 
Hence, some follow-through weakness, back towards testing weekly lows around the $1455 region, now looks a distinct possibility amid absent relevant market-moving US economic releases on Thursday.

Technical levels to watch

XAU/USD

Overview
Today last price 1470.2
Today Daily Change -2.77
Today Daily Change % -0.19
Today daily open 1472.97
 
Trends
Daily SMA20 1482.74
Daily SMA50 1491.44
Daily SMA100 1481.25
Daily SMA200 1396.66
 
Levels
Previous Daily High 1478.86
Previous Daily Low 1466.12
Previous Weekly High 1474.6
Previous Weekly Low 1445.8
Previous Monthly High 1519.04
Previous Monthly Low 1455.5
Daily Fibonacci 38.2% 1473.99
Daily Fibonacci 61.8% 1470.98
Daily Pivot Point S1 1466.44
Daily Pivot Point S2 1459.9
Daily Pivot Point S3 1453.69
Daily Pivot Point R1 1479.18
Daily Pivot Point R2 1485.39
Daily Pivot Point R3 1491.93

 

 

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