Gold holds above $1350 level, closer to 3-week tops

Haresh Menghani FXStreet

• Rising US bond yields capping additional gains.
• Weaker USD continues to lend support.
• Remains poised to extend the bullish momentum.

Gold stalled its mid-European retracement near $1350 level and has now moved back within striking distance of 3-week tops touched earlier.

Persistent US Dollar selling bias continues to underpin demand for dollar-denominated commodities - like gold. Moreover, the incoming US economic data has been pointing to a pickup in inflationary pressure and was further seen benefitting the commodity as a hedge against accelerating prices.

Even firming expectations over additional Fed rate hike moves in 2018 did little to attract any fresh selling around the non-yielding yellow, albeit seems to have kept a lid on any further gains, at least for the time being.

Meanwhile, the market seems to have largely shrugged off today's mostly in line weekly jobless claims data, clearly indicating the underlying strength in the US labor market. Also better-than-expected Philly Fed Manufacturing Index was negated by softer Empire State Manufacturing Index and failed to provide any meaningful impetus.

Looking at the broader picture, the commodity seems to be facing some resistance near the $1358 region and hence, it would be prudent to wait for some follow-through strength, beyond the mentioned hurdle, before positioning for any additional gains.

Technical levels to watch

A clear breakthrough the mentioned hurdle is likely to accelerate the up-move towards $1366 level (Jan. high) before the commodity eventually darts towards testing $1374-75 supply zone.

On the flip side, sustained weakness below $1350 level might prompt some additional profit-taking slide and drag the metal back towards $1340 support area with some intermediate support near $1346-44 zone.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD keeps its focus on 1.1800

EUR/USD is holding its ground near two-day highs around 1.1750 as Thursday’s session is drawing to a close. The pair is drawing support from a more constructive risk mood, helped by easing EU–US trade tensions and a softer US Dollar. Looking ahead, attention shifts to Friday’s flash PMI releases from both Europe and the US.

GBP/USD flirts with 1.3500 on persistent USD selling

GBP/USD is regaining momentum on Thursday and pushing up towards two-week highs around the 1.3500 mark. In the process, Cable is leaving Wednesday’s brief wobble behind and slipping back into its upward trend, helped by ongoing selling pressure on the Greenback ahead of key advanced PMI data on Friday.

Gold continues scaling new record highs, climbs above $4,950

Gold extends its record-setting rally for the fifth consecutive day on Friday, as persistent geopolitical uncertainties continue to drive safe-haven flows. Meanwhile, expectations for further policy easing by the Federal Reserve contribute to the de-dollarization trend and further underpin the non-yielding bullion, which remains on track to register gains for the third successive week and appears unaffected by extremely overbought conditions.

Bank of Japan expected to hold rates, markets seek clues on further tightening

The Bank of Japan is expected to leave its benchmark interest rate unchanged at 0.75% after concluding its two-day monetary policy meeting next Friday. The Japanese central bank hiked rates to its highest level in three decades in December, and will likely stand pat on Friday to better assess the economic consequences of previous rate hikes.

Trump walks back NATO tariffs, signals de-escalation

What began as a sharp escalation risk quickly turned into a de-escalation signal. Earlier this week, markets briefly priced in escalation risk after Donald J. Trump proposed a 10% tariff hike on eight NATO nations amid the Greenland dispute.

XRP defends $1.90 support as ETFs attract inflows despite retail caution

Ripple (XRP) is consolidating above $1.90, a short-term support level, at the time of writing on Thursday. This mild uptick marks two consecutive days of a strengthening technical outlook, following recent market-wide volatility.