• 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


Today last price 1935.95
Today Daily Change -6.21
Today Daily Change % -0.32
Today daily open 1942.16
Daily SMA20 1962.01
Daily SMA50 1896.66
Daily SMA100 1808.04
Daily SMA200 1686.09
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



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