Gold flirting with session lows, just above $1,310 level

   •  The USD climbs to 6-week tops and exerts some fresh downward pressure.
   •  Risk-off mood/resurfacing US-China trade tensions might help limit losses.

Gold met with some fresh supply at the start of a new week and is currently placed at the lower end of its daily trading range, just above $1310 level.

The precious metal struggled to build on last week's late rebound from over one-week lows and came under some renewed selling pressure in wake of the continuation of the recent US Dollar rally.

Despite the recent dovish shift by the Federal Reserve, the USD stood tall near six-week tops and was seen as one of the key factors exerting some fresh downward pressure on the dollar-denominated commodity.

The USD seemed rather unaffected by the ongoing decline in the US Treasury bond yields, albeit the prevalent cautious mood underpinned the metal's safe-haven demand and helped limit deeper losses, at least for now.

Given the recent concerns over global growth slowdown, resurfacing US-China trade tensions continued to dent investors’ appetite for riskier assets and was evident from a weaker tone across global equity markets.

With the USD price dynamics turning out to be an exclusive driver of the commodity's momentum, market participants now look forward to this week's scheduled speeches by influential FOMC members, including the Fed Chair Jerome Powell.

This followed by important US macro data - the latest inflation figures and monthly retail sales might further collaborate towards providing a meaningful directional impetus for the commodity.

Technical levels to watch

A follow-through weakness below $1310 level could get extended towards $1307-06 support area, which if broken might accelerate the fall further towards challenging the key $1300 psychological mark. 

On the flip side, the $1314-15 region now seems to have emerged as an immediate hurdle, above which the commodity is likely to aim towards testing $1321-22 supply zone en-route multi-month tops near the $1326 level.

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

Latest Forex News

Editors’ Picks

EUR/USD: Looks south after the weakest weekly close since May 2017

EUR/USD is on the defensive, having closed at 1.1089 on Friday, the weakest weekly close since May 2017. The daily chart shows the pair repeatedly faced rejection above 1.1230.


GBP/USD: On the bids to 1.2160 after latest US/UK headlines

GBP/USD rises after the UK government turns down pessimistic predictions in the Yellowhammer report. The latest statements from the US President Donald Trump add to the strength.


USD/JPY: Bulls in control in opening hour of Tokyo, market awaits Jackson Hole

USD/JPY is firm in the opening hour of Tokyo despite the latest comments from Trump where he states that he is not ready to make a deal with China while monitoring the situation in HK.


Gold gives back territory towards a 23.6% retracement

Gold prices were a touch lower by the end of the week, falling -0.68% having travelled between a high of $1,528.00 to a low of $1,503.87, ending the NY session around $1,513. 

Gold News

Four Signs of A Bear Market

I am a believer that the Universe gives you signs. That may sound a bit crazy, but these three charts are three more signs of a bear market. The top chart is the GLD exchange traded fund.

Read more