- The heavily offered tone around the USD assisted gold to regain positive traction on Friday.
- Growth concerns, fiscal impasse, declining US bond yields continued weighing on the buck.
- A modest uptick in the US equity futures might keep a lid on further gains, at least for now.
Gold spiked to fresh all-time highs, around the $1984-85 region during the early European session, albeit quickly retreated a bit thereafter.
Following the previous day's profit-taking slide and a subsequent rebound from the $1940 area, the precious metal managed to regain traction on the last trading day of the week. The uptick marked the tenth day of a positive move in the previous eleven and was sponsored by the prevalent bearish sentiment surrounding the US dollar.
Concerns that the economic recovery in the US could be grinding to a halt amid the ever-increasing coronavirus cases continued exerting heavy pressure on the greenback. The market worries resurfaced following the release of the advance US Q2 GDP report on Thursday, which showed that the economy contracted by a record 32.9% annualized pace.
Adding to this, the impasse over the next round of the US fiscal stimulus measures further undermined the already weaker greenback and benefitted the dollar-denominated commodity. It is worth reporting that Congressional Republicans and Democrats have been struggling to reach a deal on fiscal spending ahead of the expiry of some earlier provisions on Friday.
This comes on the back of dovish FOMC statement earlier this week, which coupled with the ongoing downfall in the US Treasury bond yields further drove flows towards the non-yielding yellow metal. However, modest gains in the US equity markets kept a lid on any further gains for the safe-haven commodity, at least for the time being.
Market participants now look forward to second-tier US economic releases for some impetus. Friday's US economic docket features the release of Core PCE Price Index, Personal Income/Spending data, Chicago PMI and Revised Michigan Consumer Sentiment. This along with the broader risk sentiment might produce some meaningful trading opportunities.
Technical levels to watch
|Today last price||1976.64|
|Today Daily Change||20.09|
|Today Daily Change %||1.03|
|Today daily open||1956.55|
|Previous Daily High||1971.82|
|Previous Daily Low||1939.66|
|Previous Weekly High||1906.68|
|Previous Weekly Low||1805.86|
|Previous Monthly High||1785.91|
|Previous Monthly Low||1670.76|
|Daily Fibonacci 38.2%||1951.95|
|Daily Fibonacci 61.8%||1959.53|
|Daily Pivot Point S1||1940.2|
|Daily Pivot Point S2||1923.85|
|Daily Pivot Point S3||1908.04|
|Daily Pivot Point R1||1972.36|
|Daily Pivot Point R2||1988.17|
|Daily Pivot Point R3||2004.52|
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.