Gold reverses early dip, remains supported by renewed US-China trade tensions


   •  The continuation of the recent USD rally to near two-week tops exerts some pressure.
   •  Uncertainties over a possible US-China trade deal/dovish Fed helped limit downside.

Gold traded with a mild negative bias through the early European session, albeit remained well within the previous session's broader trading range. 

The precious metal failed to capitalize on the overnight goodish bounce from over one-week lows and came under some renewed selling pressure in wake of the continuation of the recent US Dollar rally. In fact, the greenback stood tall near a two-week high on Friday and was cited as a key headwind for the dollar-denominated commodity.

Despite the pull-back, the downside remained cushioned amid a fresh bout of risk-aversion trade. Against the backdrop of broader market worries over slowing global growth, uncertainty over a possible US-China trade deal turned out to be one of the key factors boosting the precious metal's safe-haven appeal. 

On Thursday, the US President Donald Trump said he will not meet his Chinese counterpart Xi Jinping before March 1 deadline to achieve a trade agreement and dampened the recent optimism about a resolution of trade disputes between the world's two largest economies.

Meanwhile, a dovish turn on rate hikes by the Federal Reserve last week could further extend some additional support to the non-yielding yellow metal amid the prevalent risk-off mood and absent relevant market moving economic releases on the last trading day of the week. 

Technical levels to watch

XAU/USD

Overview:
    Today Last Price: 1308.9
    Today Daily change %: -0.07%
    Today Daily Open: 1309.8
Trends:
    Daily SMA20: 1298.75
    Daily SMA50: 1276.03
    Daily SMA100: 1247.89
    Daily SMA200: 1230.71
Levels:
    Previous Daily High: 1312
    Previous Daily Low: 1302.8
    Previous Weekly High: 1326.25
    Previous Weekly Low: 1297.8
    Previous Monthly High: 1326.25
    Previous Monthly Low: 1275.9
    Daily Fibonacci 38.2%: 1308.49
    Daily Fibonacci 61.8%: 1306.31
    Daily Pivot Point S1: 1304.4
    Daily Pivot Point S2: 1299
    Daily Pivot Point S3: 1295.2
    Daily Pivot Point R1: 1313.6
    Daily Pivot Point R2: 1317.4
    Daily Pivot Point R3: 1322.8

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD bouncing modestly on disappointing US Consumer Confidence

The shared currency remains pressured by the idea that the ECB will come out with massive stimulus measures in September. US Michigan Consumer Confidence down to 92.1 brakes dollar's gains.

EUR/USD News

GBP/USD retreats sharply after approaching 1.2200

The GBP/USD pair came under selling pressure after flirting with weekly highs, as a dismal US confidence report brought back risk-off. GBP/USD still up for the week and above the critical 1.2100 level.

GBP/USD News

USD/JPY: Greenback makes modest progress against Yen, near 106.30

The demand for Yen as a safe-haven currency has been weak in the last three days. The levels to beat for bulls are at the 106.30 and 106.55 resistances.

USD/JPY News

Gold gives back territory towards a 23.6% retracement

Gold prices were a touch lower by the end of the week, falling -0.68% having travelled between a high of $1,528.00 to a low of $1,503.87, ending the NY session around $1,513. 

Gold News

Four Signs of A Bear Market

I am a believer that the Universe gives you signs. That may sound a bit crazy, but these three charts are three more signs of a bear market. The top chart is the GLD exchange traded fund.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •