• Gains strong traction on heavy USD supply.
• Comments by Chinese officials weigh heavily on the USD.
• Reviving safe-haven demand lends additional support.
After an initial dip to one-week lows, gold gained some fresh traction and spiked to near 4-month tops in the past hour.
The precious metal touched an intraday high level of $1327.74, tracking broad-based US Dollar sell-off following a report that Chinese officials have recommended slowing or halting purchases of US Treasuries.
• China officials said to recommend slowing or halting Treasury buying
The news triggered a kneejerk reaction in the fixed income market and also hit global equity markets, which provided an additional boost to the yellow metal's safe-haven appeal.
The USD selling pressure seems to have receded, at least for the time being and was now seen keeping a lid on any additional gains for dollar-denominated commodities - like gold.
Currently trading around $$1324 level, traders now look forward to the US economic docket, featuring the second-tier releases of import prices and the final wholesale inventories data, for some short-term momentum play.
Technical levels to watch
A follow-through buying interest has the potential to lift the commodity towards $1332-33 supply zone, above which the momentum is likely to get extended towards $1340 ahead of the $1349-50 region.
On the downside, $1320 level now seems to protect the immediate downside, which if broken could drag the metal back towards $1312 horizontal level en-route $1308 strong support.
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.
Recommended content
Editors’ Picks
EUR/USD keeps the offered bias near 1.0600
Further US Dollar's strength keeps EUR/USD well under pressure and motivates it to approach the key 1.0600 region, where the 2024 low also sits. Looking at the Greenback, the Trump-led rally continues to fuel the uptrend to new multi-month tops.
GBP/USD revisits fresh lows in the sub1.2800 zone
Mixed results from the UK jobs report and the continuation of the upside impulse in the Greenback send GBP/USD to the area below 1.2800 the figure for the first time since mid-August.
Gold bounces off lows near $2,590
Following the early breakdown of the key $2,600 mark, prices of Gold now manages to regain some composure and reclaim the $2,600 level and beyond amidst the persistent move higher in the US Dollar and the rebound in US yields.
Bitcoin reaches new highs near $90,000, on-chain data show chances of pullback
Bitcoin hit a new all-time high (ATH) of $89,900 on Tuesday before easing to around $86,000, following a 30% surge since November 5. Technical indicators suggest the rally may be overstretched, with a potential corrective pullback ahead.
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium
What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.