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Gold jumps beyond $1500 mark, back closer to weekly tops

  • The post-FOMC fall in the US bond yields/USD helped gain some follow-through traction.
  • Not so optimistic comments from China further benefitted traditional safe-haven assets.

Gold gained some follow-through traction through on Thursday and climbed further beyond the key $1500 psychological mark during the early European session.
 
The precious metal added to the overnight post-FOMC goodish intraday bounce from over one-week lows and attracted some safe-haven flows amid renewed US-China trade uncertainties. It is worth reporting that Chile cancelled a November meeting of the Asia Pacific Economic Cooperation Council, which was supposed to the venue for the signing of a partial trade deal between the world's two largest economies.

Risk-off mood remained support

Meanwhile, the latest leg of a sudden uptick over the past hour or so was led by reports, suggesting that China is casting doubts about reaching a comprehensive long-term trade deal with the US. Adding to this, Chinese officials have warned that they won't budge on structural issues either. The report further noted that China is demanding an end to tariffs in order to begin any talks for "Phase Two".
 
The global flight to safety was further evident from a sharp intraday slide in the US Treasury bond yields. Against the backdrop of Wednesday's less hawkish than expected FOMC statement, a fresh leg of a freefall in the US bond yields exerted some additional pressure on the US Dollar and remained supportive of the bid tone surrounding the non-yielding yellow metal.
 
The commodity has now moved back closer to weekly tops, though any subsequent move is likely to confront a stiff resistance near the $1510 supply zone ahead of Friday's release of the closely watched US monthly jobs report – popularly known as NFP. Hence, it will be prudent to wair for a sustained move beyond the mentioned barrier before positioning for any further near-term appreciating move.

Technical levels to watch

XAU/USD

Overview
Today last price1504.84
Today Daily Change9.24
Today Daily Change %0.62
Today daily open1495.6
 
Trends
Daily SMA201494.6
Daily SMA501504.4
Daily SMA1001467.65
Daily SMA2001383.87
 
Levels
Previous Daily High1496.64
Previous Daily Low1481.1
Previous Weekly High1517.92
Previous Weekly Low1481.05
Previous Monthly High1557.03
Previous Monthly Low1464.61
Daily Fibonacci 38.2%1490.7
Daily Fibonacci 61.8%1487.03
Daily Pivot Point S11485.59
Daily Pivot Point S21475.58
Daily Pivot Point S31470.06
Daily Pivot Point R11501.13
Daily Pivot Point R21506.65
Daily Pivot Point R31516.66

Author

Haresh Menghani

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

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