Gold rallies to session tops, around $1285 level amid reviving safe-haven demand


   •  Fears of a further escalation in the US-China trade tensions underpin safe-haven demand.
   •  The ongoing slump in the US bond yields remained supportive of the positive momentum.
   •  Bullish traders seemed rather unaffected by a mildly positive tone surrounding the USD. 

Gold caught some fresh bids on Wednesday and recovered a major part of the overnight sharp pullback amid reviving safe-haven demand.

The safe-haven commodity failed to benefit from reports of a further escalation in the US-China trade tensions and dropped sharply on Tuesday, weighed down by a modest pickup in the US Dollar demand. However, a sharp intraday slide in the US equity markets extended some support and helped stall the downfall. 

The precious metal built on the overnight bounce and now seemed to take cues from the ongoing slump in the US Treasury bond yields. In fact, yields on the benchmark 10-year US government bond fell further below the 2.25% - the lowest since September 2017, and underpinned demand for the non-yielding yellow metal.

Bullish traders seemed rather unaffected by a mildly positive tone surrounding the greenback, which tends to dent demand for the dollar-denominated commodity, though are likely to wait for a convincing break through the $1287-88 supply zone before positioning aggressively for any further near-term appreciating move.

There isn't any major market moving US economic data due for release on Wednesday and hence, the broader market risk sentiment, driven by fresh trade-related headlines, might continue to act as a key determinant of the commodity's momentum.

Technical levels to watch

XAU/USD

Overview
Today last price 1285.14
Today Daily Change 5.64
Today Daily Change % 0.44
Today daily open 1279.5
 
Trends
Daily SMA20 1282.95
Daily SMA50 1288.68
Daily SMA100 1296.51
Daily SMA200 1260.74
Levels
Previous Daily High 1292.8
Previous Daily Low 1276.23
Previous Weekly High 1297.8
Previous Weekly Low 1269.1
Previous Monthly High 1310.7
Previous Monthly Low 1265.6
Daily Fibonacci 38.2% 1282.56
Daily Fibonacci 61.8% 1286.47
Daily Pivot Point S1 1272.89
Daily Pivot Point S2 1266.28
Daily Pivot Point S3 1256.32
Daily Pivot Point R1 1289.46
Daily Pivot Point R2 1299.41
Daily Pivot Point R3 1306.02

 

 

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

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD battles with 1.1700 as the market mood turns sour

Poor German data and renewed concerns about a default of the Chinese Evergrande property giant undermined investors’ sentiment, pushing them into the dollar’s safety.

EUR/USD News

GBP/USD accelerates its slump, trades around 1.3650

GBP/USD is under strong selling pressure, trimming most of its post-BOE gains. Concerns about the global financial health and slow moves towards tapering weigh on markets.

GBP/USD News

XAU/USD hangs near multi-week lows, around $1,745 ahead of Powell

Gold struggled to capitalize on its attempted intraday recovery move. Hawkish Fed/BoE, rising bond yields acted as a headwind for the metal. Resurgent USD demand exerted additional pressure on the commodity.

Gold News

PBoC imposes ban on crypto trading as it fosters ‘illegal financial activity’

PBoC bans crypto trading activities and a plethora of associated services, labeling it “illegal.” Overseas cryptocurrency exchanges providing services to Chinese residents will be investigated in accordance with the law. 

Read more

Evergrande, VIX and yields make for choppy day ahead

Equity markets remain focused on Evergrande as rumours of a possible default on overseas debt swirl. The market appears to be on the hunt for negative news, which leads us to conclude that stocks are going lower in the short term.

Read more

Forex MAJORS

Cryptocurrencies

Signatures