- The safe-haven gold benefitted from renewed tensions between the US and China.
- Weaker US bond yields remained supportive, albeit the uptick lacked follow-through.
Gold continued with its struggle to register any meaningful recovery and remained well within the striking distance of two-week lows set earlier this week.
Concerns over Hong Kong continued weighing on the global risk sentiment and turned out to be the only factors lending some support to traditional safe-haven assets, including Gold.
Focus remains on trade developments
It is worth recalling that the US President Donald Trump on Wednesday signed two bills supporting Hong Kong’s pro-democracy demonstrators and China has vowed to retaliate.
The prevalent cautious mood was further reinforced by weaker US Treasury bond yields, which remained supportive of a mildly positive tone surrounding the non-yielding yellow metal.
However, the fact that the latest development might have done little to dampen prospects for the US-China "phase one" trade deal kept a lid on any meaningful recovery for the metal.
This coupled with the recent US dollar bullish run to two-week tops further collaborated toward capping gains for the dollar-denominated commodity amid relatively thin liquidity conditions.
Hence, it will be prudent to wait for some strong follow-through buying before confirming that the commodity might have bottomed out in the near-term or positioning for any further recovery.
In absence of any major market-moving US economic releases, the incoming trade-related headlines might continue to play a key role in producing some meaningful trading opportunities on Friday.
Technical levels to watch
|Today last price||1456.5|
|Today Daily Change||0.50|
|Today Daily Change %||0.03|
|Today daily open||1456|
|Previous Daily High||1458.24|
|Previous Daily Low||1454|
|Previous Weekly High||1478.86|
|Previous Weekly Low||1456.54|
|Previous Monthly High||1519.04|
|Previous Monthly Low||1455.5|
|Daily Fibonacci 38.2%||1456.62|
|Daily Fibonacci 61.8%||1455.62|
|Daily Pivot Point S1||1453.92|
|Daily Pivot Point S2||1451.84|
|Daily Pivot Point S3||1449.69|
|Daily Pivot Point R1||1458.16|
|Daily Pivot Point R2||1460.31|
|Daily Pivot Point R3||1462.39|
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