Gold remains depressed near session lows, around $1950 post-US GDP


  • 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.

Gold maintained its offered tone near daily lows, around the $1950 region, and had a rather muted reaction to the US GDP report.

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

XAU/USD

Overview
Today last price 1953.81
Today Daily Change -17.64
Today Daily Change % -0.89
Today daily open 1971.45
 
Trends
Daily SMA20 1838.3
Daily SMA50 1775.77
Daily SMA100 1717.1
Daily SMA200 1625
 
Levels
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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