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.

Feed news

Take advantage of market volatility with our daily Forex, Crypto and Indices Trade Ideas!

Become Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD recaptures 1.2050 amid upbeat EZ PMIs, USD decline

EUR/USD is trading above 1.2050 after upbeat Eurozone Preliminary PMIs. The US dollar remains heavily offered across the board amid a mixed market mood, in the wake of Biden's plan for a tax hike. US PMIs awaited. 

EUR/USD News

GBP/USD holds gains below 1.3900 amid upbeat UK data

GBP/USD is consolidating gains below 1.3900, as the US dollar resumes decline after Biden's tax hike plan fuelled rally fades. The UK Retail Sales and PMIs beat expectations, offering support to the pound. 

GBP/USD News

Bitcoin, Ethereum and XRP plummet, breaching critical support levels

Bitcoin price has dropped 12.7% since yesterday and shows no signs of stopping. Ethereum price follows the pioneer crypto’s lead and might retest $2,000 again. Unlike BTC or ETH, XRP price shows signs of recovery as long as it stays above a critical demand zone.

Read more

XAU/USD eases from tops, downside remains cushioned

Gold struggled to capitalize on its intraday positive move to the $1,790 region. A modest bounce in the equity markets, US bond yields exerted some pressure. The prevalent USD selling bias should help limit the downside for the commodity.

Gold News

Bionano Genomics Inc runs into technical resistance, put options may work here

BNGO shares have continued to suffer post the retail meme crowd moving on. BNGO shares bounce from lows as DeMark buy signal flashes on Monday. BNGO shares trend up to resistance at 100 day moving average.

Read more

Forex MAJORS

Cryptocurrencies

Signatures