• Trump’s positive trade-related comments prompt some profit-taking.
• Improving risk sentiment dampens the commodity’s safe-haven status.
• A subdued USD demand might help limit the downside, at least for now.
Gold failed to capitalize on the early uptick to near one-month tops and was now seen retreating farther below the key $1300 psychological mark.
Currently placed at the lower end of its daily trading range, around the $1297 region, the precious metal has now eroded a part of the previous session's goodish up-move that came after China announced a retaliatory tariff-hike on $60 billion worth of US goods.
However, some positive comments by the US President Donald Trump, saying that he feels the Chinese trade negotiations will be successful, helped eased concerns about a full-blown US-China trade war and dampened the precious metal safe-haven status.
This coupled with a modest uptick in the US Treasury bond yields further collaborated towards driving flows away from the non-yielding yellow metal, albeit a subdued US Dollar price action might lend some support to the dollar-denominated commodity and helped limit deeper losses.
There aren't any major market moving US economic releases due on Tuesday and hence, the broader market risk sentiment might continue to play a key role in influencing the commodity's price action/produce some short-term trading opportunities.
Technical levels to watch
|Today last price||1297.38|
|Today Daily Change||-3.94|
|Today Daily Change %||-0.30|
|Today daily open||1301.32|
|Previous Daily High||1301.32|
|Previous Daily Low||1282.16|
|Previous Weekly High||1291.45|
|Previous Weekly Low||1275.1|
|Previous Monthly High||1310.7|
|Previous Monthly Low||1265.6|
|Daily Fibonacci 38.2%||1294|
|Daily Fibonacci 61.8%||1289.48|
|Daily Pivot Point S1||1288.55|
|Daily Pivot Point S2||1275.77|
|Daily Pivot Point S3||1269.38|
|Daily Pivot Point R1||1307.72|
|Daily Pivot Point R2||1314.11|
|Daily Pivot Point R3||1326.89|
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