Gold off highs, still heads for the highest close in almost three months


  • Yellow metal losses momentum during American session as US yields rebound and Wall Street trims losses. 
  • The rally found resistance below $1,240 and pulled back to $1,230. 

Gold jumped to $1,239/oz earlier today hitting the highest level since July 17 and the pulled back trimming gains. The move higher was boosted by demand for safe-haven assets and also technical factors. 

The retreat from the top took placed as Wall Street moved off lows and risk sentiment improved. The slide so far found support at $1,230 but that level was being challenged from the upside as US yields accelerate the move higher. 

The breakout of a 6-day trading range to the upside, also contribute to the spike higher. The rally in gold lost strength near the $1,240 zone. Despite moving off daily highs, XAU/USD was still headed toward the highest close since July 25. 

Technical outlook 

Gold surged above the top of its latest range but settled right below it, retaining a mild-bullish stance according to the daily chart, given that the price remains above its 20 and 100 DMA, with the shortest extending its gains below the larger ones, points out Valeria Bednarik, Chief Analyst at FXStreet. 

She notes that technical indicators remain near their recent highs, with the Momentum easing modestly, amid the lack of follow-through and the RSI aiming to regain the upside, currently at 63. “In the 4 hours chart, the metal is well above its 20 SMA, which slowly turns up but overall remains neutral, as technical indicators re-entered positive ground before losing upward strength, leaving a neutral-to-bullish stance.”

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

Editors’ Picks

EUR/USD breaks above 1.1100 amid EU hopes, US-Sino tensiosn

EUR/USD has hit a new two-month high above 1.11, amid hopes for a fiscal boost in Europe, and as growing Sino-American tensions seem to weigh on the dollar for a change. EZ inflation, US data, Trump's China speech, and end-of-month flows are in play.

EUR/USD News

GBP/USD advances amid US dollar weakness, shrugging off concerns

GBP/USD is trading above 1.23, edging higher amid US dollar weakness and Britain's gradual reopening. Intensifying Sino-American tensions and the Brexit impasse are ignored. 

GBP/USD News

Forex Today: Dollar dives, decoupling from stumbling stocks ahead of Trump's Chinese announcement

The US dollar remains on the back foot, with EUR/USD topping 1.11, despite a worsening market mood related to Sno-American relations. President Donald Trump will announce actions against China following Beijing's tightening of its grip on Hong Kong. 

Read more

Gold pokes $1,721/23 resistance area

Gold prices extend the latest recovery from $1,711 as DXY refreshes two-month low. A confluence of 10-day EMA, nine-day-old falling trend line probes immediate upside. An ascending trend line from April 21 favors the bulls.

Gold News

WTI struggles to cheer USD weakness, drops 1.40% in Asia

WTI probes gradual declines from $34.34, still eyes record monthly advances. DXY bears the burden of risk aversion wave before US President Trump’s China conference. Fears of US-China restrict the black gold’s near-term upside.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures