Gold reverses early dip to 3-day low, turns neutral ahead of NFP


  • Gold remained well supported amid persistent US-China trade uncertainty.
  • Sliding US bond yields, subdued USD price action extended some support.
  • All eyes remain glued to Friday’s release of the closely-watched US jobs data.

Gold reversed an early dip to three-day lows and is currently placed near the top end of its daily trading range, around the $1476-77 region ahead of the US monthly jobs report.

The precious metal witnessed some intraday selling during the early European session on Friday and was being weighed down by the prevalent risk-on mood, which tends to undermined demand for traditional safe-haven assets. The downtick, however, remained limited, rather was quickly bought into persistent uncertainty over a potential "phase one" trade deal between the world's two largest economies.

Traders turn cautious ahead of NFP

It is worth recalling that the US President Donald Trump on Wednesday said that talks with China were going very well. This was a complete turnaround from a previous statement made earlier this week that a deal may not come until after the US presidential election in November 2020.

Apart from conflicting trade headlines, a modest pullback in the US Treasury bond yields extended some additional support to the non-yielding yellow metal and collaborated to the intraday uptick. Meanwhile, a subdued US dollar price action did little to influence demand for the dollar-denominated commodity.

Heading into Friday's important macro data, the uptick could further be attributed to some repositioning and warrant some caution before placing any aggressive bets. Hence, it will be prudent to wait for a sustained move in either direction before confirming the commodity's near-term trajectory.

Technical levels to watch

XAU/USD

Overview
Today last price 1476.4
Today Daily Change 0.42
Today Daily Change % 0.03
Today daily open 1475.98
 
Trends
Daily SMA20 1465.11
Daily SMA50 1482.46
Daily SMA100 1486.95
Daily SMA200 1404.29
 
Levels
Previous Daily High 1480.39
Previous Daily Low 1472.9
Previous Weekly High 1466.62
Previous Weekly Low 1450.74
Previous Monthly High 1515.38
Previous Monthly Low 1445.8
Daily Fibonacci 38.2% 1477.53
Daily Fibonacci 61.8% 1475.76
Daily Pivot Point S1 1472.46
Daily Pivot Point S2 1468.94
Daily Pivot Point S3 1464.97
Daily Pivot Point R1 1479.95
Daily Pivot Point R2 1483.92
Daily Pivot Point R3 1487.44

 

 

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