Gold gains appears capped around $1,280/oz

  • Gold gives away Monday’s gains, back below $1,280/oz.
  • Safe haven demand alleviated on profit taking sentiment.
  • Traders wary on US tax reform headlines, Fed tightening.

The ounce troy of the precious metal is trading on the defensive on Tuesday albeit within a tight range around the $1,280.00 area.

Gold looks to Trump, Fed for direction

Bullion is retracing part of the important gains seen at the beginning of the week, with gains finding quite strong hurdle around $1,282, area coincident with the 21-day sma. The demand for the safe have metal remains subdued in response to a solid rebound in the greenback, which pushed the US Dollar Index back above the critical 95.00 handle.

Recent headlines from Saudi Arabia seem to have lent support to the up move in the yellow metal, while the ongoing developments around the US tax reform plan also promise to bring in bouts of volatility to the price action in Gold.

In addition, prospects of further tightening by the Federal Reserve at the December 13 meeting should keep weighing on the safe haven metal and keep occasional bullish attempt contained.

Gold key levels

As of writing Gold is down 0.24% at $1,278.48 and a breakdown of $1,266.40 (low Nov.6) would open the door to $1,264.51 (200-day sma) and finally $1,263.80 (low Oct.27). On the flip side, the next hurdle aligns at $1,282.82 (21-day sma) seconded by $1,285.10 (high Nov.2) and then $1,292.90 (high Oct.20).


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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD crashes to new 2020 lows amid ECB dovishness, coronavirus fears

EUR/USD is trading below 1.1050, at the lowest since early December. ECB President Christine Lagarde refrained from acknowledging the recent economic improvement. Fears of the spread of the coronavirus are weighing on markets.


GBP/USD pressured toward 1.31 amid risk-off mood

GBP/USD is trading around 1.31, off the highs. Coronavirus headlines are sending traders to the safety of the US dollar. Speculation about the next BOE move is rife.


Top 3 Price Prediction Bitcoin, Ethereum, XRP: Set for a dive before the next big bull market

The first initiative comes from WhatsApp. Users of Facebook’s popular instant messaging application will be able to exchange Ether among themselves and other tokens that function over the ERC20 protocol.

Read more

XAU/USD bulls challenging 1573 resistance level

XAU/USD is trading in a bull trend above its main daily simple moving averages (SMAs). After rejecting the 1600 figure earlier in January, the metal has been consolidating near the $1560 per troy ounce.

Gold News

USD/JPY drops to fresh eight-day lows near 109.50

USD/JPY extends losses and trades close to an eight-day low near 109.50 in a relatively risk-off environment, with the media headlines full of the coronavirus as it spreads internationally. Bears can look to the golden ratio around mid-108s.