- Gold witnessed an intraday turnaround from over one-month tops.
- A turnaround in the risk sentiment undermined the safe-haven metal.
- The emergence of some fresh USD selling might help limit deeper losses.
- The commodity seems poised to retest multi-year tops, around $1765 level.
Gold failed to capitalize on its early uptick to over one-month tops and was last seen trading near the lower end of its daily range, around the $1746-45 region.
The recent market worries about the second wave of coronavirus infections were further fueled by the fact that the World Health Organization (WHO) on Sunday reported a record increase in the number of new cases globally. This, in turn, weighed on investors' sentiment and provided an early lift to the safe-haven precious metal.
The commodity shot to the highest level since May 18, around the $1759 region. The early positive move, however, fizzled out rather quickly amid a turnaround in the global risk sentiment, as depicted by a goodish bounce in the US equity futures. The commodity has now filled the weekly bullish gaps, albeit the downside seems cushioned.
Some renewed US dollar selling bias might extend some support to the dollar-denominated commodity and help limit any deeper losses, at least for the time being. This coupled with the fact that the yellow metal on Friday broke through an important barrier – near the $1730-32 region – supports prospects for the emergence of some dip-buying.
Hence, the pullback might still be categorized as corrective in nature and seen as an opportunity to initiate some fresh bullish positions. The commodity seems more likely to aim back towards retesting multi-year tops, around the $1765 region amid relatively thin US economic docket, featuring the only release of Existing Home Sales data.
Technical levels to watch
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD post moderate gains on solid US data, weak Aussie PMI
The Australian Dollar registered solid gains of 0.65% against the US Dollar on Thursday, courtesy of an upbeat market mood amid solid economic data from the United States. However, the Federal Reserve’s latest monetary policy decision is still weighing on the Greenback. The AUD/USD trades at 0.6567.
EUR/USD recovers to top end of consolidation ahead of Friday’s US NFP
EUR/USD drove back to the top end of recent consolidation on Thursday, recovering chart territory north of the 1.0700 handle as market risk appetite regains balance heading into another US Nonfarm Payrolls Friday.
Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar
Gold price clings to the $2,300 figure in the mid-North American session on Thursday amid an upbeat market sentiment, falling US Treasury yields, and a softer US Dollar. Traders are still digesting Wednesday’s Federal Reserve decision to hold rates unchanged.
High hopes rouse for TON coin with Pantera as its latest investor
Ton blockchain could see more growth in the coming months after investment firm Pantera Capital announced a recent investment in the Layer-one blockchain, as disclosed in a blog post on Thursday.
NFP: The ultimate litmus test for doves vs. hawks
US Nonfarm Payrolls will undoubtedly be the focal point of upcoming data releases. The estimated figure stands at 241k, notably lower than the robust 303k reported in the previous release and below all other readings recorded this year.