Gold losing the grip, meets resistance near $1,230


  • The precious metal is struggling to extend yesterday’s up move.
  • Recent advance met resistance in the 100-day SMA near $1,230.
  • Gold trades in 3-month peaks after breaking the rangebound theme.

The once troy of the yellow metal is now looking for direction in the upper end of the recent range near $1,230.

Gold looks to USD, sentiment

Prices of the precious metal gained more than $30 on Thursday following the continuation of the sharp sell off in the risk-associated complex and the retreat in yields of the US 10-year note. The metal managed to break above the multi-week sideline theme prevailing since mid-August.

In addition, the increased volatility in past sessions saw the VIX index (aka ‘the panic index’) climbing to levels last seen in May above the 20.00, which also sustained the strong up move in the yellow metal.

However, today’s recovery in the buck plus easing concerns over the US-China trade war in response to the recently announced meeting between Xi and Trump has somewhat limited the upside in prices for the time being.

Gold key levels

As of writing Gold is losing 0.40% at $1,219.37 and a breakdown of $1,200.73 (10-day SMA) would aim for $1,199.10 (21-day SMA) and then $1,180.74 (monthly low Sep.28). On the upside, the next hurdle lines up at $1,226.87 (high Oct.11) seconded by $1,228.92 (100-day SMA) and finally $1,277.74 (200-day SMA).

 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holding above 1.18 ahead of critical US data

EUR/USD is holding onto its gains, trading above 1.18 as the dollar remains on the back foot. ADP's US job report and the ISM Non-Manufacturing PMI provide critical clues toward the Non-Farm Payrolls. Fiscal stimulus talks and geopolitics are also in play.

EUR/USD News

XAU/USD bulls unstoppable, renews life-time highs near $2040

With ‘buy the dips’ emerging as the main underlying theme behind the gold (XAU/USD) price action so far this week, the bulls flex their muscles further to record fresh all-time highs near $2040.

Gold News

GBP/USD trades around to 1.31 amid dollar weakness, ahead of data

GBP/USD is trading around 1.31, recovering as the dollar retreats. The UK government is under scrutiny for its management of the virus crisis. Services PMIs on both sides of the Atlantic are eyed.

GBP/USD News

Forex Today: Gold smashes $2,000, dollar depressed, two Non-Farm Payrolls hints eyed

Stocks, bonds, and precious metals are on the rise while the greenback is falling alongside falling yields. Investors are eyeing slow progress in fiscal stimulus talks and top-tier US figures ahead of the Non-Farm Payrolls.

Read more

WTI hits fresh two-week highs near $42.50 ahead of EIA data

WTI (futures on Nymex) extends its winning-streak into the third straight day on Wednesday, as the bulls challenge the July high of $42.51.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures