Gold rallies back closer to weekly tops, around $1335 area


  • US-China trade tensions continue to benefit the commodity’s safe-haven status.
  • Increasing bets for an eventual Fed rate cut remained supportive of the up-move.
  • Traders now eye the release of the latest US inflation figures for a fresh impetus.

 Gold caught some aggressive bids on Wednesday and built on the previous session's goodish rebound from over one-week lows.

Fears of a further escalation in the US-China trade tensions provided a strong boost to the precious metal's relative safe-haven status and turned out to be one of the key factors behind a follow-through up-move on Wednesday. The US President Donald Trump said on Tuesday that he would further raise tariffs on Chinese imports if he cannot make progress in talks with his Chinese counterpart at the G20 summit later this month. 

The global risk sentiment took a knock in reaction to the comments and was evident from a fresh wave of selling across global equity markets. The risk-off mood was further reinforced by the latest leg of a slide in the US Treasury bond yields, which affected the US Dollar in a negative manner and underpinned the dollar-denominated commodity.

Meanwhile, Trump on Tuesday also complained that the Fed was keeping interest rates way too high, which coupled with softer US Producer Price Index raised bets for an eventual Fed rate cut action, sooner rather than later and provided an additional boost to the non-yielding yellow metal. 

The commodity has now recovered a major part of its weekly losses as market participants now look forward to the US economic docket - highlighting the release of the latest US consumer inflation figures, in order to grab some meaningful trading opportunities later during the early North-American session.

Technical levels to watch

XAU/USD

Overview
Today last price 1335.3
Today Daily Change 8.40
Today Daily Change % 0.63
Today daily open 1326.9
 
Trends
Daily SMA20 1300.1
Daily SMA50 1291.23
Daily SMA100 1299.59
Daily SMA200 1266.68
Levels
Previous Daily High 1329.92
Previous Daily Low 1319.99
Previous Weekly High 1348.12
Previous Weekly Low 1306.18
Previous Monthly High 1306.9
Previous Monthly Low 1266.35
Daily Fibonacci 38.2% 1323.78
Daily Fibonacci 61.8% 1326.12
Daily Pivot Point S1 1321.29
Daily Pivot Point S2 1315.68
Daily Pivot Point S3 1311.37
Daily Pivot Point R1 1331.22
Daily Pivot Point R2 1335.53
Daily Pivot Point R3 1341.14

 

 

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 extends its gains toward 1.1300 after the dovish Fed decision

EUR/USD has extended its gains after the Fed opened the door to cutting interest rates, stating that uncertainties have increased. Markets are awaiting EU leaders to divvy up top jobs.

EUR/USD News

GBP/USD holds onto gains after retail sales, ahead of the BOE

GBP/USD has extended its gains above 1.2700 after the Fed opened the door to rate cuts. UK retail sales fell by 0.5% in May as expected. The BOE's decision and two more rounds of the Conservative contest await traders.

GBP/USD News

USD/JPY rebounds from multi-month lows, continues to trade below 108

Fed's dovish shift continues to weigh on the greenback. 10-year US Treasury bond yield plummets to lowest level since November 2016. Wall Street looks to open sharply higher on Thursday.

USD/JPY News

Gold eases from multi-year tops, still well bid near $1380 level

Gold built on the post-FOMC upsurge and rallied to near six-year tops during the Asian session on Thursday, albeit retreated a bit thereafter.

Gold News

FOMC: Prelude to a rate cut?

The Federal Reserve added little new to its policy prescript in Wednesday’s FOMC statement and economic projections and with the anticipation for a July rate cut long priced into market levels the reaction was decidedly uninvolved.

Read more

Majors

Cryptocurrencies

Signatures