- 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
|Today last price||1457.39|
|Today Daily Change||-10.60|
|Today Daily Change %||-0.72|
|Today daily open||1467.99|
|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|
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.