• Gold edged lower for the second consecutive session on Thursday and refreshed weekly lows.
  • The ongoing USD recovery from two-year lows was seen as a key factor weighing on the metal.
  • The prevalent risk-on mood, a pickup in the US bond yields further contributed to the downfall.

Gold refreshed weekly lows during the early European session, albeit lacked any strong follow-through selling and quickly recovered a bit thereafter.

The precious metal extended this week's retracement slide from the $1992 area, or near two-week tops and remained depressed for the second consecutive session on Thursday. The downtick was sponsored by a bid tone surrounding the US dollar and the upbeat market mood.

The USD rebound from two-year lows was tied in part to Tuesday's upbeat US ISM Manufacturing PMI, which jumped to a nearly two-year high in August. Even Wednesday's weaker-than-expected US ADP report failed to hinder the greenback's ongoing recovery momentum.

Sustained USD buying was seen as one of the key factors that weighed on the dollar-denominated commodity. Apart from this, the prevalent risk-on environment further dented the precious metal's safe-haven demand and contributed to the modest downtick.

Prospects of additional US fiscal stimulus and Thursday's upbeat Chinese Caixin Services PMI boosted investors' confidence. The risk-on flow was reinforced by a pickup in the US Treasury bond yields, which exerted some additional pressure on the non-yielding yellow metal.

However, the downside remains limited, at least for the time being, with bears still awaiting a sustained break below a multi-week-old ascending trend-line support. This makes it prudent to wait for some follow-through selling before positioning for any further weakness.

Market participants now look forward to the US economic docket, highlighting the release of ISM Non-Manufacturing PMI. The data might influence the USD price dynamics and produce some short-term trading opportunities later during the early North American session.

Technical levels to watch

XAU/USD

Overview
Today last price 1935.95
Today Daily Change -6.21
Today Daily Change % -0.32
Today daily open 1942.16
 
Trends
Daily SMA20 1962.01
Daily SMA50 1896.66
Daily SMA100 1808.04
Daily SMA200 1686.09
 
Levels
Previous Daily High 1973.34
Previous Daily Low 1932.73
Previous Weekly High 1976.79
Previous Weekly Low 1902.76
Previous Monthly High 2075.32
Previous Monthly Low 1863.24
Daily Fibonacci 38.2% 1948.24
Daily Fibonacci 61.8% 1957.83
Daily Pivot Point S1 1925.48
Daily Pivot Point S2 1908.8
Daily Pivot Point S3 1884.87
Daily Pivot Point R1 1966.09
Daily Pivot Point R2 1990.02
Daily Pivot Point R3 2006.7

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD climbs to fresh monthly highs above 1.0350

EUR/USD climbs to fresh monthly highs above 1.0350

Following a short-lasting downward correction, EUR/USD has regathered its bullish momentum and touched its highest level in a month above 1.0350. After the soft July inflation data, the dollar remains under constant selling pressure, fueling the pair's rally.

EUR/USD News

GBP/USD advances beyond 1.2250 as dollar selloff continues

GBP/USD advances beyond 1.2250 as dollar selloff continues

GBP/USD has advanced to a fresh weekly top above 1.2250 on Wednesday. Pressured by the weaker-than-expected July figures, the US Dollar Index is down more than 1% on the day below 105.00, providing a boost to the pair.

GBP/USD News

Gold tries to claim $1,800 amid falling US yields

Gold tries to claim $1,800 amid falling US yields

After having failed to reclaim $1,800 with the initial reaction to US inflation data, gold is, once again, attempting to break above that key level. The benchmark 10-year US Treasury bond yield is down nearly 2% on the day, helping XAU/USD push higher.

Gold News

Crypto markets tumble, but the worst is yet to come

Crypto markets tumble, but the worst is yet to come

Bitcoin price is trying to undo the gains it witnessed over the last week and is currently at the midway point. This sell-off has caused Ethereum and Ripple prices to follow suit, pausing the rallies that altcoins were experiencing.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures