•  The USD remains supported by the Fed’s patient stance and caps gains.
   •  Risk-off mood underpins safe-haven demand and limits the downside.

Gold lacked any firm directional bias and continued with its sideways consolidative price action, well within this week's broader trading range.

The precious metal struggled to capitalize on its attempted recovery from two-week lows, with a combination of diverging forces failing to provide any meaningful impetus and leading to a subdued price action for the second consecutive session on Thursday. 

The US Dollar held steady near the 98.00 handle and remained supported by the fact that the latest FOMC meeting minutes reaffirmed the Fed’s patient stance, which was eventually seen as one of the key factors keeping a lid on every attempted positive move.

However, a further escalation in the US-China trade tensions continued denting the global risk sentiment and the same was evident from the prevailing risk-off mood across equity markets, which underpinned the precious metal's safe-haven demand and helped limit deeper losses. 

Meanwhile, the global flight to safety triggered a fresh leg of a downfall in the US Treasury bond yields and provided a minor lift to the non-yielding yellow metal, albeit bulls still seemed to lack any strong conviction and awaited a fresh catalyst for any further up-move.

In the absence of any major market moving economic releases from the US, it would be prudent to wait for a convincing break in either direction before traders start positioning for the commodity's near-term trajectory.

Technical levels to watch

XAU/USD

Overview
Today last price 1274.26
Today Daily Change 2.46
Today Daily Change % 0.19
Today daily open 1271.8
 
Trends
Daily SMA20 1282.95
Daily SMA50 1290.27
Daily SMA100 1296.71
Daily SMA200 1259.02
Levels
Previous Daily High 1277.34
Previous Daily Low 1269.1
Previous Weekly High 1311.8
Previous Weekly Low 1275.09
Previous Monthly High 1310.7
Previous Monthly Low 1265.6
Daily Fibonacci 38.2% 1272.25
Daily Fibonacci 61.8% 1274.19
Daily Pivot Point S1 1268.16
Daily Pivot Point S2 1264.51
Daily Pivot Point S3 1259.92
Daily Pivot Point R1 1276.4
Daily Pivot Point R2 1280.99
Daily Pivot Point R3 1284.64

 

 

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