Gold retreats to $1,500 area on recovering sentiment, USD strength


  • US Dollar Index climbs toward 98.50 in the early American session.
  • Risk appetite returns to markets on US-China trade headlines.
  • Major equity indexes in the US opened higher on Friday. 

The tory ounce of the precious metal continues to have a difficult time breaking out of its tight weekly trading range. After edging higher to $1,507 area earlier in the day, the XAU/USD pair reversed its direction and was last seen trading a little above $1,500, adding around $2 on the day.

Earlier today, citing a source with knowledge of talks, Bloomberg reported that US President Trump was not looking to make a limited trade deal with China to revive hopes of the sides coming to terms next month in October when high-level negotiators get together for negotiations in Washington. With the initial market reaction, the 10-year US Treasury bond yield recovered its daily losses to reflect an improving risk sentiment.

On the same note, Wall Street's main indexes opened the day in the positive territory. 

USD finds demand on Friday

On the other hand, the US Dollar Index gained traction in the last hour to further weigh on the pair. Boston Fed President Rosengren hawkish comments and the heavy selling pressure surrounding the major European currencies seem to be ramping up the demand for the Greenback.

Commenting on his decision to not vote for a rate cut at this week's Federal Open Market Committee (FOMC) meeting, "Additional monetary stimulus is not needed for an economy where labor markets are already tight, and risks further inflating the prices of risky assets and encouraging households and firms to take on too much leverage," Rosengren argued.

Technical levels to watch for

XAU/USD

Overview
Today last price 1500.69
Today Daily Change 1.85
Today Daily Change % 0.12
Today daily open 1498.84
 
Trends
Daily SMA20 1515.07
Daily SMA50 1482.01
Daily SMA100 1409.75
Daily SMA200 1351.63
 
Levels
Previous Daily High 1504.2
Previous Daily Low 1489.3
Previous Weekly High 1523.3
Previous Weekly Low 1484.9
Previous Monthly High 1554.63
Previous Monthly Low 1400.9
Daily Fibonacci 38.2% 1498.51
Daily Fibonacci 61.8% 1494.99
Daily Pivot Point S1 1490.69
Daily Pivot Point S2 1482.55
Daily Pivot Point S3 1475.79
Daily Pivot Point R1 1505.59
Daily Pivot Point R2 1512.35
Daily Pivot Point R3 1520.49

 

 

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