The global flight to safety continued driving gold prices higher for the third consecutive session, to its highest level since the US Presidential elections in November 2016.

Mounting geopolitical tension over N. Korea's new missile launch over the northern Japanese island rattled global financial markets on Tuesday and boosted the precious metal's safe-haven appeal. 

Adding to this, persistent greenback selling bias, with the key US Dollar Index sinking to over 16-month lows further benefitted dollar-denominated commodities and collaborated to the yellow metal's up-move to 9-1/2 month highs. 

   •  US Dollar depressed, 92.00 on sight

The momentum helped the commodity to build on overnight strength above a key technical level, $1300 psychological mark and reinforced that the new uptrend is more likely to get extended in the near-term.

The metal, however, trimmed some of its early strong gains and has retreated a bit to $1320 area, possibly led by some profit taking following the recent upsurge of over 3.5% from Thursday's low level of $1276. 

Later during the NA session, the release of CB Consumer Confidence Index from the US would now be looked upon for some short-term trading opportunities. 

   •  US: Consumer confidence set to decline modestly – Danske Bank

The major focus, however, would remain on the revised US GDP print and the keenly watched US monthly jobs data (NFP), which would influence Fed rate hike expectations and eventually determine the next leg of directional move for the non-yielding metal. 

Technical levels to watch

A strong follow through buying interest beyond $1325 level is likely to assist the metal to retest Nov. 2016 swing highs resistance near $1337 ahead of $1342-43 resistance area. 

On the flip side, any profit taking slide below $1315-14 area now seems to find support near the $1309-08 region, which if broken could extend the corrective slide back towards the $1300 handle.

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.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD loses recovery momentum after testing 1.0200

EUR/USD loses recovery momentum after testing 1.0200

EUR/USD has lost its momentum after having climbed toward 1.0200 during the European trading hours on Wednesday. As investors wait for the FOMC to release the minutes of its July meeting, the dollar consolidates its daily gains, allowing the pair to hold above 1.0150.


GBP/USD retreats to 1.2050 area ahead of FOMC Minutes

GBP/USD retreats to 1.2050 area ahead of FOMC Minutes

GBP/USD has reversed its direction after having recovered toward 1.2100 in the second half of the day on Wednesday and retreated toward 1.2050. The risk-averse market environment makes it difficult for the pair to gain traction as focus shifts to FOMC Minutes.


Gold pushes lower toward $1,760 as US yields extend rally

Gold pushes lower toward $1,760 as US yields extend rally

Gold continues to decline toward $1,760 during the American trading hours on Wednesday. Before the FOMC releases the July meeting minutes, the benchmark 10-year US Treasury bond yield is up more than 3% on the day above 2.9%, weighing heavily on XAU/USD.

Gold News

Will the FOMC minutes make or break Bitcoin’s uptrend?

Will the FOMC minutes make or break Bitcoin’s uptrend?

Ahead of the FOMC minutes release Bitcoin withdrawal from exchanges continued. Proponents expect the market to react to signs Fed members will continue with more aggressive interest rate hikes, increasing the pressure on Bitcoin price. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!