Gold heading back towards 2-week tops near $1230

Benefiting from mixed Asian equities and a broadly subdued US dollar.
Upside may be capped by Thanksgiving thin trades and positive Treasury yields.

Dhwani Mehta FXStreet

Gold (futures on Comex) found buyers in Asia once again near the 1227 level, now heading back towards the two-week tops of 1229.70 reached a day before.

The yellow metal remains on the front foot so far this Friday, as the US dollar extends its softness across the board into a third straight session, as markets remain wary over the Fed’s rate hike outlook amid mounting concerns about a potential global slowdown. The US dollar index trades weaker near 96.50 level, looking to test Thursday’s low at 96.32.

Moreover, gold prices derive support from the mixed tone seen on the Asian equities, as the Chinese stocks get sold-off into looming US-China trade concerns and Chinese growth concerns. However, it remains to be seen if the bullion can sustain the upbeat momentum, as positive Treasury yields combined with sowing volumes could limit further upside.

Further, markets may prefer to remain in a wait and see mode ahead of the meeting between the US President Trump and his Chinese counterpart Xi at this month’s G20 summit in Argentina.

Gold Technical Levels

XAU/USD

Overview:
    Last Price: 1227.5
    Daily change: 64 pips
    Daily change: 0.0522%
    Daily Open: 1226.86
Trends:
    Daily SMA20: 1219.12
    Daily SMA50: 1217.5
    Daily SMA100: 1207.24
    Daily SMA200: 1237.34
Levels:
    Daily High: 1229.09
    Daily Low: 1224.6
    Weekly High: 1225.4
    Weekly Low: 1196
    Monthly High: 1243.43
    Monthly Low: 1182.54
    Daily Fibonacci 38.2%: 1227.37
    Daily Fibonacci 61.8%: 1226.32
    Daily Pivot Point S1: 1224.61
    Daily Pivot Point S2: 1222.36
    Daily Pivot Point S3: 1220.12
    Daily Pivot Point R1: 1229.1
    Daily Pivot Point R2: 1231.34
    Daily Pivot Point R3: 1233.59

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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