Gold plummets to 3-month lows, below $1460 level


  • Renewed USD buying interest kept exerting some pressure on Friday.
  • A fresh leg of an upsurge in the US bond yields added to the selling bias.
  • The follow-through selling confirms the overnight bearish breakdown.

Having failed to capitalize on its early attempted bounce, Gold met with some fresh supply and dropped to near three-month lows in the last hour.
 
The precious metal added to its recent losses and continued losing ground on the last trading day of the week – marking its fourth day of a negative move in the previous five. Despite Thursday's conflicting trade-related headlines, optimism over a partial US-China trade deal continued weighing on traditional safe-haven assets and kept exerting downward pressure on the precious metal.

Weighed down by a combination of factors

Apart from fading safe-haven demand, a fresh leg of an upsurge in the US Treasury bond yields further collaborated towards driving flows away from the non-yielding yellow metal. In fact, the yield on the benchmark 10-year US government bond climbed back closer to three-month tops set on Thursday and helped revive the US Dollar demand, which further undermined demand for the dollar-denominated commodity.
 
Friday’s downfall could further be attributed to some follow-through technical selling, especially after the overnight bearish break through the lower end of a one-month-old trading range. A subsequent weakness below October monthly swing lows, near the $1460 region, might have already set the stage for a further near-term depreciating move towards testing the $1440 support area.

Technical levels to watch

XAU/USD

Overview
Today last price 1457.39
Today Daily Change -10.60
Today Daily Change % -0.72
Today daily open 1467.99
 
Trends
Daily SMA20 1493.18
Daily SMA50 1500.76
Daily SMA100 1476.26
Daily SMA200 1389.78
 
Levels
Previous Daily High 1492.2
Previous Daily Low 1461.14
Previous Weekly High 1515.38
Previous Weekly Low 1481.1
Previous Monthly High 1519.04
Previous Monthly Low 1455.5
Daily Fibonacci 38.2% 1473
Daily Fibonacci 61.8% 1480.33
Daily Pivot Point S1 1455.35
Daily Pivot Point S2 1442.71
Daily Pivot Point S3 1424.28
Daily Pivot Point R1 1486.41
Daily Pivot Point R2 1504.84
Daily Pivot Point R3 1517.48

 

 

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