• Gold attracted some dip-buying in the vicinity of the weekly low and shot to a fresh daily high.
  • The ongoing slide in the US bond yields capped the USD and offered support to the commodity.
  • Hawkish Fed expectations might hold back bulls from placing aggressive bets around the metal.

Gold reversed an intraday slide to the $1,824 area, back closer to the weekly low touched the previous day and shot to a fresh daily high during the early North American session. The XAUUSD was last seen trading, around the $1,840-$1845 region, up 0.25% for the day, with bulls still awaiting a sustained move beyond the very important 200-day SMA.

The ongoing steep decline in the US Treasury bond yields forced the US dollar to trim a part of its intraday gains, which, in turn, offered support to the dollar-denominated commodity. That said, a combination of factors held back bulls from placing aggressive bets and kept a lid on any meaningful intraday upside for gold, for the time being.

A turnaround in the global risk sentiment - as depicted by a generally positive tone around the equity markets - acted as a headwind for the safe-haven precious metal. Apart from this, expectations that the Fed would tighten its monetary policy at a faster pace to curb soaring inflation might also contribute to capping gains for the non-yielding gold.

The worsening global economic outlook, however, might continue to lend support to the XAUUSD and help limit any meaningful decline. Investors remain concerned that a more aggressive move by major central banks would pose challenges to the global economic recovery. Adding to this, Thursday's disappointing Eurozone PMIs further fueled fears about a possible recession.

The mixed fundamental backdrop warrants caution before positioning for any firm near-term direction for gold prices. This makes it prudent to wait for strong follow-through buying beyond the overnight swing high, around the $1,847-$1,848 region, to support prospects for additional near-term gains, possibly towards the $1,870-$1,880 supply zone.

Technical levels to watch

XAU/USD

Overview
Today last price 1835.51
Today Daily Change -2.23
Today Daily Change % -0.12
Today daily open 1837.74
 
Trends
Daily SMA20 1844.76
Daily SMA50 1867.33
Daily SMA100 1891.58
Daily SMA200 1843.58
 
Levels
Previous Daily High 1847.95
Previous Daily Low 1823.43
Previous Weekly High 1879.26
Previous Weekly Low 1805.11
Previous Monthly High 1909.83
Previous Monthly Low 1786.94
Daily Fibonacci 38.2% 1838.58
Daily Fibonacci 61.8% 1832.8
Daily Pivot Point S1 1824.8
Daily Pivot Point S2 1811.85
Daily Pivot Point S3 1800.28
Daily Pivot Point R1 1849.32
Daily Pivot Point R2 1860.89
Daily Pivot Point R3 1873.84

 

 

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