Gold holds steady above $1700 mark, lacks follow-through


  • Gold attracts some buying near 50-DMA support amid escalating US-China tensions.
  • A goodish pickup in the USD demand kept a lid on any strong gains for the metal.
  • Investors now eye US jobless claims for some impetus ahead of Friday’s NFP report.

Gold edged higher on Thursday and moved back above the $1700 mark, recovering a part of the overnight sharp fall to near four-week lows.

The safe-haven commodity managed to find some support near 50-day SMA, around the $1690 region and gained some positive traction on Thursday amid concerns over worsening US-China relations. The US suspended Chinese airlines passenger flights to and from the US with effect from June 16. The move came after the dragon nation earlier barred American carriers from re-entering China.

The latest developments fueled worries about a further escalation in tensions between the world's two largest economies and kept a lid on the recent optimism over a sharp V-shaped recovery for the global economy. This, in turn, extended some support to the precious metal's perceived safe-haven status, albeit a goodish pickup in the US dollar demand capped any meaningful gains.

The greenback was back in demand on Thursday, allowing the key USD Index to stage a notable bounce from the lowest level since mid-March. Stronger USD turned out to be one of the key factors that held investors from placing any aggressive bullish bets around the dollar-denominated commodity.

Even from a technical perspective, the overnight downfall dragged the yellow metal below support marked by a short-term ascending trend-channel extending from mid-April. Hence, the attempted recovery might still be seen as a selling opportunity and runs the risk of fizzling out rather quickly.

Market participants now look forward to the Initial Weekly Jobless Claims data from the US, which might influence the USD price dynamics and produce some short-term trading opportunities. The key focus, however, will be on Friday's release of the closely watched US monthly jobs report, popularly known as NFP.

Technical levels to watch

XAU/USD

Overview
Today last price 1702.41
Today Daily Change 3.44
Today Daily Change % 0.20
Today daily open 1698.97
 
Trends
Daily SMA20 1722.99
Daily SMA50 1694.45
Daily SMA100 1639.51
Daily SMA200 1567.93
 
Levels
Previous Daily High 1732.1
Previous Daily Low 1689.46
Previous Weekly High 1737.78
Previous Weekly Low 1693.78
Previous Monthly High 1765.38
Previous Monthly Low 1670.72
Daily Fibonacci 38.2% 1705.75
Daily Fibonacci 61.8% 1715.81
Daily Pivot Point S1 1681.59
Daily Pivot Point S2 1664.2
Daily Pivot Point S3 1638.95
Daily Pivot Point R1 1724.23
Daily Pivot Point R2 1749.48
Daily Pivot Point R3 1766.87

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

USD/JPY pops and drops on BoJ's expected hold

USD/JPY pops and drops on BoJ's expected hold

USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.  

USD/JPY News
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed. 

AUD/USD News
Gold consolidates near record high, bullish potential seems intact

Gold consolidates near record high, bullish potential seems intact

Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.

Gold News
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures