• An uptick in US bond yields prompts some profit taking.
• Risk-on mood/modest USD rebound adds to the pressure.
• All set for the fourth consecutive week of gains; focus remains on NFP.
Gold prices edged lower on Friday and eroded part of previous session's sharp up-move to fresh 3-1/2 month highs.
Spot gold retreated below $1320 level, down 0.15% for the day, as attention shifts to the keenly watched US non-farm payrolls data for fresh directional impetus.
A modest uptick in the US Treasury bond yields prompted some profit-taking off the non-yielding yellow metal, especially after yesterday's single day up-move of around 1.5% from an intraday low near $1306 area.
Meanwhile, the ongoing bullish run-up in equity markets also did little to support the precious metal's safe-haven appeal, while reviving US Dollar demand exerted some additional pressure on the dollar-denominated commodity.
Investors' focus on Friday would remain glued to one of the important US economic indicators - monthly jobs report, popularly known as NFP, which is known to infuse volatility across global financial markets and should eventually provide meaningful trading opportunities on the last trading day of the week.
Nevertheless, the commodity remains on track to post fourth consecutive week of gains and all set for its highest weekly close since mid-September.
Technical levels to watch
A follow-through retracement below $1317 level is likely to get extended towards $1312 horizontal support, which if broken might turn the commodity vulnerable to retest $1307-06 intermediate support ahead of the $1300 handle.
On the upside, momentum back above $1322-23 area would reaffirm near-term bullish bias and accelerate the up-move towards $1328 horizontal level en-route $1333-35 supply zone.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.