- Gold snaps two-day losing streak amid fresh risk-off.
- US-China trade deal, risk of virus resurgence keep trading sentiment heavy.
- China data added fuel to the risk aversion.
- US inflation figures, qualitative catalysts can direct near-term moves.
Gold prices take the bids near $1.700.80, intraday high of $1,702.32, during the pre-Europe session on Tuesday. The safe-haven recently bounced off three-day low, prints 0.16% gains on a day now, while benefiting from the broad risk aversion wave.
While the US-China tussle is likely to have provided the initial support to the precious metal, fears of the coronavirus (COVID-19) resurgence seem to have recently put a bid under the bullion.
Portraying the risks, stocks in Asia register losses whereas the US 10-year Treasury yields also drop below 0.70%, down 3.5 basis points (bps) so far during the day.
It should also be noted that the US dollar gains are likely restricting the metal’s upside as the greenback has a negative correlation with the commodity prices.
In addition to the aforementioned risk catalysts, the USD seems to have gained the bids from the Fed policymaker’s efforts to placate traders amid talks of negative Fed rate.
As a result, the US dollar Index (DXY), a gauge of the greenback versus the major currencies, refreshed the two-week high before stepping back to 100.27, up 0.0.5%, by the press time.
Although qualitative catalysts are likely to keep the risks heavy, US inflation figures for April will also be the key to watch for immediate trade direction.
Technical analysis
Sellers look for entry below 21-day EMA level of $1,693 for fresh entries to target an ascending trend line from April 21, at $1,678, until then the bullion’s odds of refreshing the monthly high beyond $1,723.70 can’t be ruled out.
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 stays defensive below 1.1050, as US NFP data looms
EUR/USD stays defensive below1.1050 in the European morning on Friday. The pair lacks a clear directional impetus, as traders refrain from placing fresh bets ahead of the key US Nonfarm Payrolls data. The focus remains on ECB-speak as well.
GBP/USD recovers to near 1.3150 ahead of US NFP data
GBP/USD has recovered ground to near 1.3150 heading into the European opening bells on Friday. The further upside, however, appears elusive, as traders brace for the highly-anticipated US Nonfarm Payrolls data for fresh cues on the Fed interest rate outlook.
Gold: Will US Nonfarm Payrolls drive XAU/USD to fresh record highs?
Gold price extends a side trend below the key $2,670 resistance amid the Israel-Iran conflict. The US Dollar eases off six-week highs, as traders reposition ahead of the Nonfarm Payrolls data.
Nonfarm Payrolls set to grow moderately in September as markets mull bets of another big Fed rate cut
Economists expect the Nonfarm Payrolls report to show that the US economy added 140,000 jobs in September, following a job gain of 142,000 reported in August.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.