- A modest USD rebound from two-year lows prompted some profit-taking around gold.
- The US GDP collapsed 32.9% during the second quarter of 2020, albeit did little to influence.
- A steep fall in the US bond yields, weaker risk sentiment extended some support to the metal.
The precious metal witnessed some selling on Thursday and moved away from the previous day's all-time high, around the $1981 area retested in the aftermath of a dovish FOMC statement. A modest US dollar rebound from more than two-year lows was seen as one of the key factors that prompted some profit-taking around the dollar-denominated commodity.
Meanwhile, the USD bulls seemed rather unimpressed by Thursday's release of the advance Q2 GDP report, which showed that the US economy contracted by 32.9% annualize pace. A steep decline in the US Treasury bond yields, coupled with the impasse over the next round of the US fiscal stimulus measures kept a lid on any strong gains for the greenback. This, in turn, extended some support to the non-yielding yellow metal.
Apart from this, a sharp turnaround in the global risk sentiment – as depicted by heavy losses in the equity markets – further underpinned the precious metal's safe-haven status and helped limit any deeper losses, at least for now. Hence, it will be prudent to wait for some strong follow-through selling before confirming that the commodity might have already topped out.
Technical levels to watch
|Today last price||1953.81|
|Today Daily Change||-17.64|
|Today Daily Change %||-0.89|
|Today daily open||1971.45|
|Previous Daily High||1980.89|
|Previous Daily Low||1941.58|
|Previous Weekly High||1906.68|
|Previous Weekly Low||1805.86|
|Previous Monthly High||1785.91|
|Previous Monthly Low||1670.76|
|Daily Fibonacci 38.2%||1965.87|
|Daily Fibonacci 61.8%||1956.6|
|Daily Pivot Point S1||1948.39|
|Daily Pivot Point S2||1925.33|
|Daily Pivot Point S3||1909.08|
|Daily Pivot Point R1||1987.7|
|Daily Pivot Point R2||2003.95|
|Daily Pivot Point R3||2027.01|
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