Gold extended its profit-taking slide from multi-month highs for the third consecutive session and dipped below the $1300 mark, albeit has managed to bounce off lows.

A quick reversal in investors' risk appetite, following Tuesday’s North Korean headlines, exerted some bearish pressure around the safe-haven precious metal. 

Wednesday's upbeat US economic reports - ADP and GDP, helped the US Dollar Index to extend its solid rebound from over 2-1/2 year lows and further dented demand for dollar-denominated commodities - like gold. 

   •  US Dollar firm, around 93.00 ahead of US PCE

Adding to this, today's upbeat Chinese manufacturing PMI added to the buoyant sentiment and contributed to the yellow metal's fall back below the key $1300 psychological mark.

The metal, however, showed resilience at lower level and has recovered back to $1307 level amid persistent concerns around North Korea-related tensions. 

Moreover, investors also seemed reluctant to place aggressive bets ahead of Friday’s keenly watched NFP data, which might influence the Fed’s near-term monetary policy outlook and eventually provide fresh impetus to the non-yielding commodity. 

Ahead of the official jobs report, today’s US economic docket would be looked upon to grab some short-term trading opportunities.

Technical levels to watch

Bulls would be eyeing for a sustained move beyond $1310 level, above which the metal is likely to head towards $1315 hurdle before eventually darting towards yearly tops resistance near the $1325 region.

On the flip side, a decisive break below the $1300 mark could extend the corrective slide towards $1292-91 horizontal support ahead of $1284 level. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD recaptures 1.08 as coronavirus fears weigh on market mood

EUR/USD has recaptured 1.08 as US bond yields retreat in reaction to growing fears about the coronavirus outbreak economic impact. Earlier, the pair plunged amid weak German data.

EUR/USD News

GBP/USD bounces above 1.30 as markets shrug off wage figures

GBP/USD is trading above 1.30 as investors ignore weak UK wage figures and Brexit concerns once again. Coronavirus headlines are eyed.

GBP/USD News

Forex Today: Coronavirus takes a bite from the apple, Gold gains, Bitcoin bounces

The coronavirus outbreak's economic impact is growing as Apple, the iPhone maker has issued a warning that it is unable to meet its guidance due to production and issues and closed stores in China. The tech giant's announcement has been weighing on the market mood, pushing gold and the yen higher. 

Read more

Gold firmer, near $1,600/oz on coronavirus fears

Renewed fears around the Chinese coronavirus (COVID-19) have been supporting the demand for the safe haven metal in past hours, taking the ounce troy to levels just shy of the key $1,600 mark.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex MAJORS

Cryptocurrencies

Signatures