- The USD fails to capitalize on the intraday bounce and helped regain traction.
- Escalating geopolitical tensions remained supportive of the strong bid tone.
- The commodity remains on track to post the fourth consecutive week of gains.
Gold quickly reversed an early dip to daily lows, around the $1383 region, with bulls making a fresh attempt to lift it back above the key $1400 psychological mark.
The commodity had good two-way price moves on the last trading day of the week, though a combination of supporting factors helped limit the intraday pullback from multi-year lows and remained supportive.
Despite a solid rebound in the US Treasury bond yields, the US Dollar struggled to capitalize on its attempted intraday rebound and was seen as one of the key factors underpinning the dollar-denominated commodity.
The greenback remained on the defensive in the wake of the latest dovish shift by the Fed, signalling that it remains ready to ease monetary policy in order to support economic growth and combat subdued inflationary pressure.
This coupled with escalating geopolitical tensions, especially after Iran shot down a US surveillance drone, weighed on investors' sentiment and further benefitted the precious metal's perceived safe-haven status.
Moving ahead, Friday's US economic docket - featuring the release of flash manufacturing PMI and existing home sales data, seems unlikely to be a major game changer but will still be looked upon for some trading opportunities.
Nevertheless, the commodity remains on trade to end the week with strong gains of over 4%, marking its fourth consecutive week of the positive move, and possibly register its highest weekly closing since August 2013.
Technical levels to watch
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.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0650 after PMI-inspired rebound
EUR/USD loses traction and retreats to the 1.0650 area after rising toward 1.0700 with the immediate reaction to the upbeat PMI reports from the Eurozone and Germany. The cautious market stance helps the USD hold its ground ahead of US PMI data.
GBP/USD fluctuates near 1.2350 after UK PMIs
GBP/USD clings to small daily gains near 1.2350 in the European session on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling stay resilient against its rivals.
Gold flirts with $2,300 amid receding safe-haven demand
Gold (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark in the European session. Eyes on US PMI data.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.