- The USD stood tall near two-week lows and exerted some fresh downward pressure.
- Improving risk sentiment further weighed on the yellow-metal's safe-haven status.
- Technical selling below $1500 mark seemed to have aggravated the bearish pressure.
Gold continued losing ground through the early North-American session, farther below the key $1500 psychological mark, and dropped to 1-1/2 week lows in the last hour.
Following the previous session's two-way price action, the traditional safe-haven commodity came under some renewed selling pressure on the last trading day of the week and failed to gain any respite from the ongoing political drama in the United States. It is worth recalling that the controversy around a whistleblower report prompted House Democrats to launch a formal impeachment inquiry against the US President Donald Trump earlier this week.
Weighed down by stronger USD/fading safe-haven demand
Traders, however, seemed unimpressed by the recent US political developments, rather took cues from the prevailing bullish sentiment surrounding the US Dollar. In fact, the key USD Index held steady just below two-week tops set earlier this Friday and was seen as one of the key factors weighing heavily on the dollar-denominated commodity - Gold.
This coupled with improving global risk sentiment, as depicted by a positive trading mood around equity markets amid the recent encouraging US-China trade development, allowed the US Treasury bond yields to regain some positive traction on Friday and further collaborated towards driving flows away from the non-yielding yellow metal.
Apart from this, possibilities of some short-term trading stops being triggered and (or) fresh technical selling below the $1500 handle seemed to have further contributed towards aggravating the intraday bearish pressure. Hence, a follow-through weakness, back towards challenging monthly swing lows support near the $1483 region, now looks a distinct possibility.
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
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.