Gold rallies to 1-1/2 week tops, approaching $1600 mark

  • Gold gained some strong follow-through traction for the third consecutive session on Tuesday.
  • The Fed’s unlimited QE weighed heavily on the USD and provided a strong boost to the metal.

Gold maintained its strong bid tone through the early European session and was last seen trading near 1-1/2 week tops, just below the $1590 region.

The precious metal built on its recent bounce from the $1450 support area, or YTD lows, and continued gaining strong positive traction for the third consecutive session on Tuesday.

The Fed announced unprecedented measures to buy unlimited amounts of Treasury bonds and mortgage-backed securities to support the economy struggling from the coronavirus pandemic.

The extraordinary array of programs helped ease concerns over tightening liquidity and was aimed to keep borrowing costs at low levels, which eventually underpinned the non-yielding yellow metal.

Meanwhile, the latest move also halted the global rush to cash, which prompted some aggressive US dollar long-unwinding trade and provided an additional boost to the dollar-denominated commodity.

The strong intraday positive momentum seemed rather unaffected by a goodish recovery in the global risk sentiment, which tends to dampen demand for traditional safe-haven assets, including gold.

Tuesday's strong follow-through momentum could further be attributed to some technical buying, all against the backdrop of the overnight sustained back through the $1527-30 horizontal resistance.

A sustained move beyond the $1600 round-figure mark will reinforce the bullish set-up and set the stage for a further near-term appreciating move, possibly back towards the $1638-40 supply zone.

Technical levels to watch


Today last price 1583.97
Today Daily Change 31.19
Today Daily Change % 2.01
Today daily open 1552.78
Daily SMA20 1590.68
Daily SMA50 1582.94
Daily SMA100 1535.74
Daily SMA200 1504.26
Previous Daily High 1561.22
Previous Daily Low 1482.74
Previous Weekly High 1561
Previous Weekly Low 1451.3
Previous Monthly High 1689.4
Previous Monthly Low 1547.56
Daily Fibonacci 38.2% 1531.24
Daily Fibonacci 61.8% 1512.72
Daily Pivot Point S1 1503.27
Daily Pivot Point S2 1453.77
Daily Pivot Point S3 1424.79
Daily Pivot Point R1 1581.75
Daily Pivot Point R2 1610.73
Daily Pivot Point R3 1660.23



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

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Bulls battle 200-day EMA ahead of US PCE Inflation

EUR/USD is holding onto the recent recovery above 1.1900, up for first weekly gain in four. US dollar ignores firmer Treasury yields on fears of the PCE inflation gauge confirming the Fed’s hawkish tilt. Risk appetite remains positive, as Biden’s stimulus joins EU-UK trade optimism. Fedspeak eyed as well.


GBP/USD attempts recovery toward 1.3950 as USD softens ahead of PCE data

GBP/USD bounces towards 1.3950, as the US dollar eases across the board amid risk-on mood. US infrastructure stimulus deal lifts the sentiment, as the pound recovers from the dovish BOE-led blow. Mixed updates on Brexit, Delta Plus covid variant keeps bears hopeful.


Gold prints first weekly gains in four around $1,780, US PCE data eyed

Gold stays on the front foot near $1780 in early Europe. US Treasury yields retreat, DXY struggles ahead of the Fed’s preferred inflation gauge of inflation. Market sentiment stays upbeat on US stimulus, trade headlines. Fedspeak also joins the watchers’ list for fresh impulse.

Gold News

Cardano eyes another 15% upswing

Cardano price rallied significantly over the past 24 hours in an attempt to recover the losses piled up after the recent crash. Although a minor retracement seems likely after a quick run-up, the uptrend appears to be intact.

Read more

US PCE inflation preview: Data likely to reaffirm FOMC's hawkish tilt

The US Bureau of Economic Analysis will release the PCE inflation report on Friday, June 25. Markets expect the Core PCE Price Index, the Federal Reserve’s preferred gauge of inflation, to rise to 3.4% on a yearly basis in May from 3.1% in April.

Read more