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: Weakest daily close since June 2017, focus on US durable goods

EUR/USD looks south toward 1.10, having bolstered the already bearish technical setup with a close below 1.1176 yesterday. The pair took a beating yesterday, courtesy of the broad-based US dollar demand. 

EUR/USD News

GBP/USD regains 1.2900 handle on Brexit headlines

The GBP/USD pair regains its stand above 1.2900 while heading into the London open on Thursday. Absence of immediate challenge to PM May’s position and a likely Brexit deal voting helps the GBP.

GBP/USD News

USD/JPY keeps range around 112.00 post-BOJ

USD/JPY has barely moved in response to BOJ’s decision to keep key policy tools unchanged. The downward revision of the growth and inflation forecasts could push the JPY lower during the day ahead. 

USD/JPY News

US Durable Goods Preview: Where the consumer leads

Durable goods orders are expected to rise 0.8% in March having fallen 1.6% in February. Orders excluding the transportation sector are predicted to gain 0.2%.

Read more

Gold: Immediate rising support-line favors gradual recovery to $1280

Gold is taking the rounds near $1276 while heading into the European open on Thursday. The yellow metal has been on recovery from Tuesday when it plummeted to the 2019 lows.

Gold News

Majors

Cryptocurrencies

Signatures