Gold Review: Drops to fresh session low, now seems vulnerable

Haresh Menghani FXStreet

• Surging US bond yields help ease USD bearish pressure and prompt some fresh selling.
• Fading safe-haven demand, amid easing global trade tensions adds to the downward pressure.
• Technical studies point to a possible resumption of the well-established bearish trend.

After an initial uptick to $1235 area, gold met with some fresh supply and has now eroded a part of gains recorded in the previous session.

Persistent US Dollar selling pressure, which tends to underpin demand for dollar-denominated commodities contributed to the initial uptick during the Asian session on Thursday. However, a goodish pickup in the US Treasury bond yields helped ease the USD bearish pressure and prompted some fresh selling around the non-yielding yellow metal.

This coupled with easing global trade tensions after the US President Donald Trump and European Commission President Jean-Claude Juncker agreed to work towards eliminating trade barriers, further weighed on the precious metal's safe-haven appeal and collaborated to the ongoing retracement slide.

Technical Analysis

The commodity is retreating from weekly tops, set on Monday, which now seems to constitute towards forming a bearish double-top chart pattern on the 1-hourly chart.

Meanwhile, the latest leg of downfall over the past hour or so could also be attributed to some technical selling below a short-term ascending trend-line support on the 1-hourly chart.

Technical indicators have also started losing positive momentum and hence, a follow-through weakness, back closer to $1224 horizontal support, now looks a distinct possibility.

A convincing break below the mentioned support would confirm the bearish formation and pave the way for the resumption of the commodity's prior depreciating move.

Spot rate: $1228
Daily High: $1235
Trend: Turning bearish again

Resistance
R1: $1235 (weekly tops)
R2: $1241 (horizontal zone)
R3: $1249 (July 12 swing high)

Support
S1: $1224 (horizontal zone)
S2: $1218 (weekly low set on Tuesday)
S3: $1212 (YTD swing low touched on July 19)

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD remains offered; bears target 1.3600

GBP/USD now leaves behind part of its recent recovery and revisits the low 1.3600s at the beginning of the week. Indeed, Cable trades with a mild downward bias amid decent gains in the Greenback as investors remain wary of upcoming US data releases and the Jackson Hole event.

EUR/USD remains sidelined above 1.1650

EUR/USD trades on the defensive following the closing bell on Wall Street on Monday, hovering around the 1.1660 region and adding to Friday’s small decline. The pair’s pullback comes in response to an acceptable rebound in the US Dollar in a context of generalised caution ahead of key US data releases and Chair Warsh’s speech in Jackson Hole.

Gold advances to over three-month high as bulls look to reclaim $4,700

Gold climbs to a fresh high since mid-May, with bulls now eyeing $4,700 and extending the rally witnessed since the beginning of this month. The US Treasury's bond market intervention failure fuels concerns about fiscal sustainability and boosts demand for bullion as an alternative store of value. Moreover, the US Dollar struggles to attract any meaningful buyers, which, along with receding bets for an immediate Fed rate hike, continues to benefit the non-yielding yellow metal.

Ethereum: BitMine scoops 32K ETH, hints at further gains

Ethereum (ETH) treasury company BitMine Immersion Technologies (BMNR) expanded its digital asset holdings last week with another round of acquisitions. The firm purchased 32,447 ETH during the week, lifting its holdings to 5.847 million ETH. That represents its largest purchase since the first week of July.

Will Jackson Hole ignite Gold and Silver’s next explosive breakout?

The 2026 Jackson Hole Economic Policy Symposium arrives at a pivotal moment. The U.S economy faces record debt, elevated borrowing costs, a weaker dollar and renewed momentum across hard assets. For The Gold & Silver Club, the backdrop increasingly validates its early-year call: “2026 will be the Year of Hard Assets.”

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.