Gold jumps back to 4-month tops on weaker USD

Haresh Menghani FXStreet

Gold continued gaining some positive traction through the early European session and is currently hovering around 4-month tops touched last week.

The US Dollar sank to fresh three-year lows, below the 90.00 round figure mark and was seen benefitting dollar-denominated commodities - like gold. Adding to this, a subdued action surrounding the US Treasury bond yields further underpinned demand for the non-yielding yellow metal and collaborated to the up-move.

Meanwhile, the latest protectionist measures by the US, the new tariffs on solar panels and washing machines, sparked concerns about a global trade battle and has led to some risk-aversion trade, which eventually provided an additional boost to the precious metal's safe-haven appeal.

With the USD still struggling to gain any respite, the commodity seems all set to build on its bullish momentum and head back towards testing September 2017 highs.

Technical levels to watch

Momentum beyond the $1344-45 region could get extended even beyond $1350 level towards 2017 highs resistance near $1357-58 region. On the flip side, retracement back below $1340 level might continue to find some support near the $1334 region, which is followed by a strong support near $1328-26 zone.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.