Gold remains depressed below $1500 mark, multi-day lows


  • A goodish pickup in the US bond yields exerted some fresh pressure on Monday.
  • Positive trade-related comments/a modest USD uptick added to the selling bias.
  • The downside seemed cushioned as the focus remains on US-China trade talks.

Gold added to the previous session's losses and dropped to near one-week lows during the early Asian session on Tuesday, albeit managed to recover a bit thereafter.
 
The precious metal failed to capitalize on last week's solid rebound from two-month lows and came under some renewed selling pressure on the first day of a new trading week. A goodish pickup in the US Treasury bond yields provided a modest lift to the US Dollar, which eventually turned out to be one of the key factors exerting pressure on the dollar-denominated commodity - Gold.

Weighed down by trade optimism

The downtick seemed unaffected by a mixed trading sentiment across global equity markets, weighed down by reports that Chinese officials were increasingly reluctant to agree to a broad trade deal pursued by the US President Donald Trump. White House economic adviser Larry Kudlow helped ease some anxiety, which further undermined the precious metal's safe-haven demand and collaborated to the weaker tone.
 
Kudlow said that the United States was open to looking at China's proposals and added that the US and Chinese trade negotiators could make progress. This was followed by reports suggesting that China is ready to do a deal with the United States on parts of negotiations. Hence, the key focus will remain on the outcome from US-China trade negotiations in Washington starting this Thursday.
 
In the meantime, Tuesday's US economic docket, highlighting the release of Producer Price Index (PPI), will now be looked upon for some short-term impetus later during the early North-American session. This coupled with the broader market risk sentiment and the USD price dynamics might further assist investors to grab some meaningful trading opportunities.

Technical levels to watch

XAU/USD

Overview
Today last price 1491.33
Today Daily Change -2.14
Today Daily Change % -0.14
Today daily open 1493.47
 
Trends
Daily SMA20 1499.74
Daily SMA50 1501.4
Daily SMA100 1435.72
Daily SMA200 1366.31
 
Levels
Previous Daily High 1509.86
Previous Daily Low 1488.32
Previous Weekly High 1519.04
Previous Weekly Low 1455.5
Previous Monthly High 1557.03
Previous Monthly Low 1464.61
Daily Fibonacci 38.2% 1496.55
Daily Fibonacci 61.8% 1501.63
Daily Pivot Point S1 1484.58
Daily Pivot Point S2 1475.69
Daily Pivot Point S3 1463.05
Daily Pivot Point R1 1506.11
Daily Pivot Point R2 1518.75
Daily Pivot Point R3 1527.64

 

 

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