Gold holding onto the 1300 level by the skin of its teeth


  • Gold has fallen from 1320 to a low o 1303 while DXY bounced from 95.84 to a high of 96.63.
  • The rally in stocks is boosting US dollar demand.

For a number of mixed reasons, the greenback is taking up the bid. Despite the accommodative stance by the Fed and yesterday's dovish shift in rate hike expectations, gold is under pressure.

"While the US central bank killed the dream of an additional rate hike in 2019, signalling a "perma-pause", the reality is the market believes that the next move may very well be a cut. CTAs are set to turn become substantial buyers above $1315/oz, and given that the economy may be slowing, we remain comfortable with our eventual $1,400+ target for the yellow metal, as we expect data to continue deteriorating," analysts at TD Securities explained.

The precious metal previously picked up a bid earlier when President Trump said he would keep tariffs on China even after a trade agreement had been reached to make sure the country is adhering to the terms of any trade deal. 

Gold levels

To the downside, 1302 is key ahead of 1298, 1290 while 1280 is a keen target. Below there, 1275 remains the line in the sand to the downside, and a break below it will put the attention back to the towards to 1250, a key confluence area made up of Fibos and prior support and resistance. On the next leg up,however, 1332 guards the 2019 highs as being the 19th Feb high of 1345.19. 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD directionless just above 1.1200

The EUR/USD pair has started the week gapping lower amid tensions in the Middle East giving the greenback an extra lift. ECB monetary policy decision later this week weighing on the shared currency.

EUR/USD News

GBP/USD depressed but off daily lows

The Sterling came under selling pressure on news that Sir Alan Duncan has resigned as foreign office minister in the middle of a conflict with Iran. Tensions mounts ahead of Tories’ leadership definition.

GBP/USD News

USD/JPY remains in daily range below 108 following Kuroda comments

The USD/JPY pair is having a hard time finding direction in the second half of the day and continues to move sideways below the 108 mark.

USD/JPY News

Gold in search of a firm direction, stuck in a range below $1430 area

Gold extended its sideways consolidative price action through the mid-European session on Monday and remained confined in a narrow trading band, around the $1425 region.

Gold News

Altcoins are set up to hunt for Bitcoin

Among the main Altcoins, only Ethereum is yet to be crossed upwards. XRP moves in another ecosystem and will not pull the market. Libra may be positive, not a danger to the market.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •