Gold jumps to fresh weekly tops, US macro data in focus

Haresh Menghani FXStreet

• Persistent USD weakness helps build on overnight recovery move.
• Reviving safe-haven demand provides an additional boost.
• US CPI/monthly retail sales data to provide fresh impetus.

Gold continued gaining some positive traction through the early European session and was seen building on overnight recovery move from over 1-week lows.

The greenback selling pressure remained unabated on Wednesday, with the key US Dollar Index dropping to its lowest level in almost three-weeks and underpinning demand for dollar-denominated commodities - like gold.

• US Dollar extends the drop below 94.00

Meanwhile, a sell-off in global equity markets also seems to have revived the precious metal's safe-haven demand and remained supportive of the follow-through up-move on Wednesday.

Currently placed at weekly tops, around the $1284-85 region, investors now look forward to the key US macro data - CPI and monthly retail sales data, which might influence December Fed rate hike expectations and provide some fresh impetus for the non-yielding metal.

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes: "The metal is likely to witness a bullish cup and handle breakout soon. A move above $1284 would confirm a bullish break and shall open doors for a rally to $1306 (Oct. high)."

"On the downside, only an end of the day close below the 200-day MA of $1264 would signal the continuation of the sell-off from the high of $1357.52 (Sept. high)" he adds.

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.