Gold flirting with session lows, below $1225

Haresh Menghani FXStreet

Gold once again failed to build on its recovery move beyond $1230 level and has now dropped to session lows, eroding previous session's tepid recovery gains.

On Wednesday, the previous metal rebounded after hitting fresh eight-week lows and recovered some of its steep losses posted on Monday following the release of FOMC meeting minutes, which showed that policymakers were concerned over the recent sluggish inflation indications.

• FOMC Minutes: Low inflation no deterrent to further tightening – HSBC

Adding to this, a weaker trading sentiment around Asian equity markets on escalating geopolitical tensions around the Korean peninsula provided a minor boost to metal's safe-haven appeal and collaborated to an early minor uptick on Thursday.

However, indications that the Fed could start shrinking its massive balance sheet by September was seen lending support to the US Treasury bond yields and capped further recovery for the non-yielding yellow metal. Moreover, a modest pickup in the US Dollar demand further weighed on dollar-denominated commodities and dragged the metal to session lows near $1224 level.

• US Dollar Index firmer above 96.00 ahead of ADP, ISM

Investors now look forward to today's release of ADP report on the US private sector employment, which is seen as a precursor to Friday's official jobs report (NFP), and hence, might provide fresh impetus later during early NA session.

Technical levels to watch

Immediate support is pegged near $1220 area, below which the metal could extend its downward trajectory further towards $1207-06 intermediate support en-route $1200 round figure mark.

On the upside, $1230 level remains immediate strong supply zone, which is closely followed by resistance at the very important 200-day SMA near $1233-35 region. A convincing break through $1235 resistance might trigger a short-covering rally initially to $1241-42 resistance ahead of $1250 important barrier.

Author

Haresh Menghani

FXStreet

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

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold retakes $4,200 amid pre-US CPI repositioning

Gold holds firm, revisiting $4,200 on Friday, extending recovery from two-month lows. US Dollar eases in tandem with Oil prices and Treasury yields, awaiting US sentiment data. The tide seems to be turning in favor of Gold, but the daily RSI is still bearish.

Ethereum activates Glamsterdam on Sepolia testnet: Why the price is falling anyway

Ethereum (ETH) has reached a key milestone in its next major network upgrade. The planned changes aim to improve Ethereum’s Layer 1 capacity and efficiency as network activity grows. The development comes as ETH retreats toward $2,500, highlighting the contrast between the network’s long-term technical progress and its short-term market weakness.

Canada Unemployment Rate expected to rise to 6.5% as US tariffs test labor market

Statistics Canada will release its September Labour Force Survey on Friday, with markets anticipating a modest recovery in employment following August's sharp decline. The report takes on particular importance as it will be the first to fully reflect the impact of new United States tariffs that took effect on August 22.

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.