Gold plummets below $1,500 on renewed trade optimism


  • USTR in a statement announced a delay to additional tariffs on some Chinese imports.
  • Wall Street posts strong gains on improved risk sentiment.
  • 10-year US Treasury bond yield reverses early losses, up more than 2.5%.

The XAU/USD pair, which capitalized on the risk-off flows and rose to its highest level in more than six years at $1,535, earlier today, came under strong bearish pressure in the last hour and slumped below the critical $1,500 handle as the latest headlines surrounding the US-China trade dispute revived hopes of sides making progress toward an agreement. As of writing, the pair was down around 1% on the day at $1,496.

US delays tariffs on some Chinese products

The United States Trade Representative's office published a statement on Tuesday announcing the Trump administration's decision to delay additional tariffs on some Chinese imports until December 15. Wall Street's main indexes rose sharply on these remarks and the 10-year US Treasury Bond yield erased early gains and was last adding more than 2.5% on the day to reflect the shift in the market sentiment.

According to the USTR's statement, some of the products whose tariffs will be delayed include "computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing," 

The Greenback also capitalized on rising Treasury bond yields, lifting the US Dollar Index to its highest level in a week near 97.80 and putting additional weight on the pair's shoulders.

During the Asian session on Wednesday, Retail Sales and Industrial Production data from China will be looked upon for fresh impetus.

Technical levels to watch for

XAU/USD

Overview
Today last price 1496.46
Today Daily Change -14.64
Today Daily Change % -0.97
Today daily open 1511.1
 
Trends
Daily SMA20 1445.54
Daily SMA50 1406.1
Daily SMA100 1346.94
Daily SMA200 1311.18
Levels
Previous Daily High 1518.48
Previous Daily Low 1488.19
Previous Weekly High 1510.16
Previous Weekly Low 1436.96
Previous Monthly High 1452.72
Previous Monthly Low 1382.02
Daily Fibonacci 38.2% 1506.91
Daily Fibonacci 61.8% 1499.76
Daily Pivot Point S1 1493.36
Daily Pivot Point S2 1475.63
Daily Pivot Point S3 1463.07
Daily Pivot Point R1 1523.66
Daily Pivot Point R2 1536.22
Daily Pivot Point R3 1553.95

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD trades around 1.1100 amid the Italian crisis, ahead of Fed minutes

EUR/USD is trading around 1.1100, in familiar ranges. Italian President Mattarella will explore if a new government can be formed after PM Conte resigned. The FOMC Minutes are eyed later in the day.

EUR/USD News

GBP/USD leans lower ahead of the Johnson-Merkel meeting

GBP/USD is trading below 1.2150, losing some ground. UK PM Johnson will meet German Chancellor Merkel in Berlin after the latter called for finding practical solutions on the Irish backstop.

GBP/USD News

USD/JPY: Bulls re-take 106.50 amid higher S&P futures, Treasury yields

Following a temporary reversal seen on Tuesday, the USD/JPY pair resumes the bullish momentum in Wednesday's Asian trading and regains the 106.50 level, tracking the gains in the US Treasury yields and S&P 500 futures. 

USD/JPY News

Gold rebounds above $1,500, remains stuck in tight range

After closing the previous day at $1,506, the XAU/USD pair edged lower on Wednesday as the recovering market sentiment made it difficult for the precious metal to find demand as a safe-haven.

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Critical technical levels cryptos need to overcome after the summer slide

Late August is vacation time in the northern hemisphere – and cryptocurrency bulls may be at the beach as well. Tuesday's slide in prices lacks clear triggers and perhaps shows some fatigue or profit-taking.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •