Gold remains on track to end week below $1,500


  • Risk-on flows continue to weigh on the precious metal.
  • Retail sales in the US rose more than expected in August.
  • US Dollar Index recovered from lows on upbeat data.

The troy ounce of the precious metal rose above $1,500 but failed to preserve its strength as the upbeat market sentiment made it difficult for the safe-haven gold to find demand. The XAU/USD pair slumped to a daily low of $1,488 during the American trading hours and now seems to have settled a little above the $1,490 handle. Unless it rebounds above the $1,508 mark in the remainder of the day, the pair will close in the negative territory on the weekly chart for the third straight week.

Easing trade worries bring back risk appetite

Earlier today, China’s State Council said that they will be excluding some agricultural products including soybeans and pork from retaliatory tariffs on US imports, which is seen as a sign of further easing the US-China tensions ahead of next month's critical high-level negotiations in Washington.

Furthermore, regarding reports claiming that his administration was considering the option of offering an interim trade deal that includes a delay to China tariffs in exchange for agricultural purchases, US President Donald Trump said that he'd prefer to have a complete deal with China.

Boosted by the risk-on flows, the 10-year US Treasury bond yield extended its rally and was last up nearly 6% on the day, aiming to post a weekly gain of nearly 20%.

Meanwhile, despite the decisive upsurge witnessed in the US T-bond yields, the US Dollar Index (DXY) struggled to gain traction as the Greenback weakened against its major European rivals. Although today's data from the US showed that retail sales in August increased by 0.4% to beat the market expectation of 0.2% and helped the DXY rebound from its lows, the index is still down 0.15% on the day at 98.20, helping the pair limiting its losses.

Technical levels to watch for

XAU/USD

Overview
Today last price 1491.5
Today Daily Change -7.50
Today Daily Change % -0.50
Today daily open 1499
 
Trends
Daily SMA20 1516.89
Daily SMA50 1472.68
Daily SMA100 1398.93
Daily SMA200 1345.32
Levels
Previous Daily High 1523.3
Previous Daily Low 1489.25
Previous Weekly High 1557.03
Previous Weekly Low 1502.95
Previous Monthly High 1554.63
Previous Monthly Low 1400.9
Daily Fibonacci 38.2% 1510.29
Daily Fibonacci 61.8% 1502.26
Daily Pivot Point S1 1484.4
Daily Pivot Point S2 1469.8
Daily Pivot Point S3 1450.35
Daily Pivot Point R1 1518.45
Daily Pivot Point R2 1537.9
Daily Pivot Point R3 1552.5

 

 

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