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


Today last price 1285.14
Today Daily Change 5.64
Today Daily Change % 0.44
Today daily open 1279.5
Daily SMA20 1282.95
Daily SMA50 1288.68
Daily SMA100 1296.51
Daily SMA200 1260.74
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



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