Gold plummets to fresh session lows, weakens farther below $1300


   •  Rebounding US bond yields triggered the initial leg of the downfall.
   •  A goodish pickup in the USD demand adds to the bearish pressure.
   •  Technical selling below $1300 mark intensifies the intraday slide.

Gold remained heavily offered through the early North-American session and tumbled to fresh daily lows in the last hour. 

After a brief mid-session consolidation phase, the previous metal met with some fresh supply and extended its sharp intraday retracement slide from 1-1/2 week tops. The initial leg of weakness was triggered by a goodish rebound in the US Treasury bond yields, which tend to drive flows away from the non-yielding yellow metal.

Adding to this, a sudden pickup in the US Dollar demand exerted some additional downward pressure on the dollar-denominated commodity, which coupled with possibilities of some short-term trading stops being triggered on a sustained weakness below the key $1300 psychological mark further aggravated the bearish pressure. 

Meanwhile, the prevalent cautious mood, as depicted by softer tone around equity markets did little to lend any support to the precious metal's relative safe-haven demand, with bulls also failing to gain any respite from today's second-tier US economic releases - initial weekly jobless claims and import/export price indices. 

With today's steep decline, the commodity reversed intra-week gains and has now moved within striking distance of weekly lows. Hence, a follow-through weakness, possibly below the $1290 horizontal support, now looks a distinct possibility.

Technical levels to watch

A convincing break below the mentioned support is likely to accelerate the downfall further towards the commodity's next major support near the $1286-85 region. On the flip side, the $1297 level, closely followed by the $1300 handle now seems to act as an immediate resistance, which if cleared might lift the metal back towards testing the $1309-10 supply zone.
 

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 falls to two-week lows as trade wars escalate, strong US data

EUR/USD is hovering above 1.1150, the lowest in two weeks as Chinese media reported that the country is no longer interested in talks with the US after the latter blacklisted Huawei. US Consumer Sentiment beat with 102.4.

EUR/USD News

GBP/USD hits lowest since January as cross-party Brexit talks collapse

GBP/USD hits the lowest levels since January, below 1.2750. The UK's Labour Party said there is no point in talking with a government about to collapse. UK PM May is set to step down in June.

GBP/USD News

USD/JPY fails again to break 110.00, turns flat for the day and the week

The USD/JPY pair found support around the 109.50 area and bounced to the upside, erasing losses.

USD/JPY News

Gold breaks to the downside hits 2-week lows near $1275

Gold prices accelerated to the downside today and particularly after the beginning of the American session, resuming the bearish move. The yellow metal is falling for the fourth day in-a-row and it is down almost $30 from the weekly high. 

Gold News

Bitcoin price update: BTC reclaims $7,000, recovery stalled

Bitcoin (BTC) has recovered from a scary flash crash that took it all the way down from $7,800 to as low as $6,512. The first digital coin lost about 16% of its value in a matter of hour with no particular reason .

Read more

Majors

Cryptocurrencies

Signatures