• Gold edges lower on Friday and erodes a part of the overnight gains to a one-month high.
  • A modest USD strength turns out to be a key factor exerting some pressure on the metal.
  • Recession fears, geopolitical tensions should limit losses ahead of the key US NFP report.

Gold attracts some sellers on Friday and erodes a part of the previous day's strong move up to the $1,795 region, or a one-month high. The XAU/USD remains depressed around the $1,785 zone through the first half of the European session and for now, seems to have snapped a two-day winning streak.

The US dollar regains some positive traction on the last day of the week, which is turning out to be a key factor exerting some downward pressure on the dollar-denominated gold. The modest USD uptick, meanwhile, could be attributed to some repositioning trade ahead of the closely-watched US monthly jobs data, due for release later during the early North American session.

In the meantime, subdued action around the US bond markets is likely to act as a headwind for the USD and lend support to the non-yielding yellow metal. Despite hawkish remarks by several Fed officials this week, investors continue pushing back against the idea of a larger rate hike at the September FOMC meeting. This, in turn, has been weighing on the US bond yields.

Apart from this, growing recession fears, along with China-Taiwan tensions over US House Speaker Nancy Pelosi's visit to the island, should limit the downside for the safe-haven gold. In fact, China on Thursday conducted missile strikes in the Taiwan Strait. The five missiles landed within Japan's exclusive economic zone and raises tensions in the region.

Investors might also refrain from placing aggressive bets and prefer to wait for a fresh catalyst from the US NFP report. The data will play a key role in influencing the near-term USD price dynamics and provide a fresh directional impetus to gold. This makes it prudent to wait for strong follow-through selling before confirming that the XAU/USD has topped out.

Technical levels to watch

XAU/USD

Overview
Today last price 1791.64
Today Daily Change 0.44
Today Daily Change % 0.02
Today daily open 1791.2
 
Trends
Daily SMA20 1735.14
Daily SMA50 1790.53
Daily SMA100 1846.51
Daily SMA200 1842.01
 
Levels
Previous Daily High 1794.97
Previous Daily Low 1763.3
Previous Weekly High 1768.04
Previous Weekly Low 1711.55
Previous Monthly High 1814.37
Previous Monthly Low 1680.91
Daily Fibonacci 38.2% 1782.87
Daily Fibonacci 61.8% 1775.4
Daily Pivot Point S1 1771.34
Daily Pivot Point S2 1751.49
Daily Pivot Point S3 1739.67
Daily Pivot Point R1 1803.01
Daily Pivot Point R2 1814.83
Daily Pivot Point R3 1834.68

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD holds lower ground near 0.6950 on softer Chinese inflation

AUD/USD holds lower ground near 0.6950 on softer Chinese inflation

AUD/USD is holding lower ground near 0.6950 as sellers keep reins following softer Chinese CPI and PPI data. Markets remain risk-averse ahead of US inflation, which is crucial for the Fed's next rate hike move. 

AUD/USD News

EUR/USD: Fake triangle breakout drags Eurozone bulls to near 1.0200

EUR/USD: Fake triangle breakout drags Eurozone bulls to near 1.0200

The EUR/USD is hovering around Tuesday’s low at 1.0203 and is likely to display a steep fall on its violation. The asset is declining swiftly after facing barricades above 1.0240 and has shifted into bearish territory. In the early Tokyo session, the major has given a downside break of the 1.0209-1.0215 range.

EUR/USD News

Gold bears seeking a critical rally in US yields around CPI

Gold bears seeking a critical rally in US yields around CPI

The gold price is flat in Tokyo as markets await the US inflation data for July that will come out during the New York open. The price has been supported by lower yields and that is supportive because the yellow metal offers no interest. 

Gold News

Crypto Sleeping Giants: Hedera Hashgraph price could shock the world

Crypto Sleeping Giants: Hedera Hashgraph price could shock the world

HBAR price shows a drop in volume amidst the current downtrend. Hedera Hashgraph has the potential to rally towards 2000%. Traders should keep the smart contract alternative token on their watchlists and consider a dollar cost average approach for investing. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures