- Growing US-China trade optimism exerted some initial downward pressure.
- Rate cut expectations/a modest USD pullback helped regain positive traction.
- Traders now look forward to ECB decision/US CPI for short-term opportunities.
Gold quickly reversed an early Asian session dip and rallied back above the key $1500 psychological mark to hit three-day tops in the last hour.
The US President Donald Trump's decision to delay a planned tariff hike on Chinese goods by two weeks to October 15 added to the recent encouraging signs and contributed to improving global risk sentiment, which eventually exerted some downward pressure on traditional safe-haven assets - like Gold.
Initial downtick turns out to be short-lived
However, the initial downtick to an intraday low level of $1489 turned out to be short-lived, rather was quickly bought into amid expectations of further monetary easing by the Fed, which seemed to be one of the key factors driving flows back towards the non-yielding yellow metal.
Adding to this, a modest US Dollar pullback from one-week tops, set in the previous session, further underpinned demand for the dollar-denominated commodity, which coupled with possibilities of some short-term near-term short-covering further contributed to the goodish intraday up-move.
It will now be interesting to see if the commodity is able to capitalize on the intraday up-move or meets with some fresh supply at higher levels as market participants start repositioning for the latest ECB monetary policy update. This will be followed by the release of US consumer inflation figures, which might further collaborate towards producing some meaningful trading opportunities on Thursday.
Technical levels to watch
|Today last price||1502.3|
|Today Daily Change||5.10|
|Today Daily Change %||0.34|
|Today daily open||1497.2|
|Previous Daily High||1498.3|
|Previous Daily Low||1485.4|
|Previous Weekly High||1557.03|
|Previous Weekly Low||1502.95|
|Previous Monthly High||1554.63|
|Previous Monthly Low||1400.9|
|Daily Fibonacci 38.2%||1493.37|
|Daily Fibonacci 61.8%||1490.33|
|Daily Pivot Point S1||1488.97|
|Daily Pivot Point S2||1480.73|
|Daily Pivot Point S3||1476.07|
|Daily Pivot Point R1||1501.87|
|Daily Pivot Point R2||1506.53|
|Daily Pivot Point R3||1514.77|
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.