Gold offered near $ 1252 in Asia, despite Brexit concerns

Dhwani Mehta FXStreet

Gold prices on Comex stalled its minor overnight recovery mode and resumed declines in the Asian session, as positive equities and treasury yields dampen the safe-haven demand for the bullion.

Gold: Article 50 trigger in focus

Currently, gold drops -0.60% to $ 1247.55, having posted daily highs at $ 1251.85 and a day’s low at $ 1246.50. Gold prices fail to benefit from the looming concerns surrounding the Article 50 triggering, after the UK PM May signed the Article 50 letter.

The yellow metal also remains under pressure, as the greenback continues to consolidate yesterday’s heavy gains versus its main competitors, triggered by upbeat US economic releases, thus, keeping sentiment underpinned around the treasury yields.

Markets now look forward to the Article 50 trigger scheduled later today, which could provide some impetus to the metal, while the US pending home sales data and Fedspeak will keep the traders busy in the NA session.

Comex Gold Technical Levels

The metal has an immediate resistance at 1251.85/96 (daily high/ 5-DMA) and 1255.70 (daily pivot). Meanwhile, the support stands at 1243.91 (200-DMA) below which doors could open for 1240 (round number).

Sell 12%

Buy 88%

Avg Sell Price 1265.00

Avg Buy Price 1228.57

Liquidity Distribution

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.