Gold plummets to 1-1/2 week lows, below $1285 level

   •  Risk-on mood/US-China trade optimism keeps exerting pressure for the third straight session.
   •  Upbeat US data/ modest uptick in the US bond yields add to the selling bias in the last hour.
   •  Bullish traders seemed rather unimpressed by the ongoing USD downfall to multi-week lows.

Gold extended its steady intraday decline through the early North-American session and dropped to over one-week lows, below $1285 level in the last hour.

The precious metal extended last week's sharp retracement slide from the $1310-11 supply zone and kicked off a new week on a downbeat note, losing ground for the third consecutive session amid the prevalent risk-on mood. 

Against the backdrop of Friday's upbeat Chinese trade data, which eased fears of a sharp economic slowdown, growing optimism over a possible US-China trade deal boosted investors’ appetite for riskier assets.

Improving global risk sentiment was evident from a positive tone surrounding equity markets and turned out to be one of the key factors denting the precious metal's perceived safe-haven status.

Adding to this, a modest uptick in the US Treasury bond yields, following the upbeat release of Empire State Manufacturing Index, further collaborated towards driving flows away from the non-yielding yellow metal.

Meanwhile, the prevalent US Dollar selling bias, which tends to underpin demand for the commodity-linked currency, failed to lend any support or stall the ongoing slide back closer to monthly lows. 

From a technical perspective, the commodity has now found acceptance below 100-day SMA and a follow-through weakness below $1280 level will confirm a bearish breakdown, paving the way for further depreciating move. 

Technical levels to watch

XAU/USD

Overview
Today last price 1283.92
Today Daily Change -6.48
Today Daily Change % -0.50
Today daily open 1290.4
 
Trends
Daily SMA20 1300.64
Daily SMA50 1306.6
Daily SMA100 1287.69
Daily SMA200 1247.52
Levels
Previous Daily High 1295.82
Previous Daily Low 1288.7
Previous Weekly High 1310.7
Previous Weekly Low 1288.7
Previous Monthly High 1327.8
Previous Monthly Low 1280.1
Daily Fibonacci 38.2% 1293.1
Daily Fibonacci 61.8% 1291.42
Daily Pivot Point S1 1287.46
Daily Pivot Point S2 1284.52
Daily Pivot Point S3 1280.33
Daily Pivot Point R1 1294.58
Daily Pivot Point R2 1298.77
Daily Pivot Point R3 1301.71

 

 

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